NZ Property Market Reality Check: High Inventory and Falling Asking Prices
New Zealand's property market is facing a reality check as it enters spring with record-high inventory levels and falling asking prices. According to realestate.co.nz, there are currently 33,252 residential properties listed for sale nationally, up 9.3% compared to July last year. This represents the highest July inventory level in 12 years.
The national average asking price has fallen by $70,332 since February, a decline of 7.8%. This trend is significant because it suggests vendors are adjusting their expectations downward and buyers have more negotiating power.
Realestate.co.nz's general manager customers, Vanessa Williams, acknowledged this reality in recent commentary, saying successful vendors are pricing for today's conditions rather than holding out for '2021 prices.' The article also noted that high inventory can mean weak demand and falling asking prices indicate a shift away from a seller's market.
The data from QV's June House Price Index shows national residential property values fell 0.4% over the three months to the end of June, remaining 14.8% below the 2022 market peak. The Reserve Bank housing data also recorded 21,534 house sales during the March quarter, compared to 25,892 in the December quarter.
Buyers have something they haven't had for years: time. With multiple properties available and greater negotiating power, buyers can compare options, request building reports, and include finance conditions without feeling pressured to make unconditional offers.