House buyers have 45 percent more choice

House buyers now have 45 percent more homes to choose from than three years ago, according to Realestate.co.nz. There are just under 33,000 homes for sale on their website, with 8000 new listings in August, marking an 11.8 percent increase from three years ago. However, the overall number of new listings has decreased by 5.1 percent year-on-year.

Chief executive Sarah Wood attributes some of the increase to slowed sales and continued listings. She notes that this has led to a stock build-up, as more properties are coming onto the market and selling at a slower pace. Wood suggests that changes such as the reduction in the brightline test from 10 years to two years may have encouraged more investors to sell.

Historically, the peak of the property market, following Covid lockdowns, saw only about 12,500 homes listed for sale. However, in Wood's seven years of experience, listings have been closer to the 25,000 mark on average. Currently, 33,000 is considered a higher number, a trend that has been present for the past couple of years.

The average asking price nationwide is $849,362, which is less than $28,000 below the 2023 level. Wood believes we have reached a new normal after three years of relatively flat asking prices, with buyers waiting for the next correction.

In August, Coromandel and Marlborough had the largest percentage drops in new listings. Realestate.co.nz estimates it would take 26 weeks to clear the current inventory at the present sales rate, with varying timelines in different regions.