New data shows that the price of almost 40% of properties that were listed with a price in 2022 was later cut.
According to new information from realestate.co.nz, property owners are hesitant to advertise their homes for sale. Across the country, December had a 26% decrease in new property listings compared to December 2021.
In the last month, only Taranaki and Coromandel had more postings than they had a year ago.
However, there remained a wide variety of other homes from which to choose.
Coromandel, Nelson and bays, Taranaki, and the central North Island all had more than double the number of postings compared to last year.
Stocks rose 55.3% throughout the country from the previous year.
Since a “buyers’ market” emerged, several stores had to cut their prices to attract customers.
Nationally, 39% of listings in 2022 saw a price reduction.
The prices of 10% of December’s new listings were reduced. This covers homes initially scheduled for auction but later sold at a set price after the seller accepted an offer.
According to spokesperson Vanessa Williams, a scarcity of new listings is likely attributable to consumers waiting to see the result of this year’s election, pricing uncertainty, or higher financing costs.
Inquiring minds want to know what the new year holds. We’ll have to see whether this holds true for 2023 when voters often put off major purchases like homes and cars.
Those who did list continued to seek relatively high prices, with the national average asking price rising to $920,422 in December from around $900,000 in November. In Southland, the asking price hit a new high of $547,269.
According to data compiled by the Real Estate Institute, the national median sales price dropped 12.4% year-over-year to $925,000 in November.
Williams said, “There have been a lot of extraneous elements at play this year.”
To paraphrase the New Zealand government: “Not only have we witnessed tremendous economic activity inside New Zealand and worldwide, but we have also been in recovery from the surging prices we observed during the height of pandemic restrictions.”
Nationwide and in the regions of Hawke’s Bay, Taranaki, Otago, Auckland, Wellington, Waikato, and Nelson, the market favored purchasers.
Williams said that “buyers’ markets occur” when “fewer purchasers in the market mixed with stock increases around the motu produce a perfect storm when supply surpasses demand.”
It’s not inherently harmful to sellers, she noted.
“In a buyer’s market, there is greater leeway for both parties to haggle and investigate the property in question. Having this feature doesn’t guarantee cheap costs.
