The supply of homes available for sale appears to be tightening with the number of homes newly listed for sale on Realestate.co.nz dropping on both a monthly and annual basis in November.
There were 12,762 homes newly listed for sale on the specialist property website in November, down 4.8% compared to October and down 5.6% compared to November last year.
The decline was mainly caused by decline in the number of houses that were newly listed for sale in November, which declined 6.3% compared to October and were down 7.2% compared to November last year.
That was partially offset by a big increase in the number of apartments that were newly listed for sale in November, which were up 16.1% compared to October and up 14% compared to November last year.
The trend for lifestyle properties was flat, with the number newly listed for sale in November barely changed from October and from November last year.
The big increase in apartment listings occurred mostly in Auckland which dominates the apartment market, and where 558 apartments were newly listed for sale in November compared with 459 in October and 429 in November last year.
However that was more than matched by a fall in the number of Auckland houses newly listed for sale on the website, which dropped from 3673 in October to 3307 in November, suggesting the supply of homes listed for sale could be starting to tighten as the market heads into the summer selling season.
The trend for new listings was largely flat in Canterbury and the Waikato, the country’s second and third largest real estate markets respectively, while new listings declined for the second month in a row in the Bay of Plenty.
Wellington went against the trend and posted a strong increase in new listings for the third month in a row, with 1018 homes newly listed for sale in November compared with 938 in October.
Realestate.co.nz chief executive Brendon Skipper said the number of homes newly listed for sale last month was the lowest for any November month since November 2009.
‘This may further exacerbate the shortage of inventory, which still hovers near near the all-time low of 16.1 weeks we reached last month,” he said.
Inventory is a measure of the national supply of homes for sale, expressed as the number of weeks it would take to sell all of the currently listed properties at the average rate of sale (see chart below).