The view of the Property report reflects my experiences of late. The market for good homes is getting stronger, assisted by low interest rates, a shortage of new builds, the Christchurch earthquake, the leaky homes fiasco, an abysmal stock market and immigration.
Summary of the market – September 2011
The property has now fully entered its traditional spring period; an active time with new listings appearing as the weather improves. This year the two uncertain variables of the Rugby World Cup and the forthcoming election certainly do not appear to be affecting the supply side of the market.
New listings continued to come onto the market – by no means a flood, but much in line with seasonal trends. The current rate of sale of properties has been growing steadily over the past 6 months and whilst in last couple of months this rate of sale has been at a higher rate than listings leading to a decline in inventory; during September this balance was redressed. As a consequence in the month of September the inventory of unsold houses rose slightly.
The key measure for the month is without doubt the asking price expectation, which rose again a significant $10,000 to $525,565. This is now 3.4% ahead of September last year and just 1% below the peak asking price set in April of this year.
The truncated mean asking price for all new listings in September rose significantly from $415,078 in August to $425,565. On a seasonally adjusted basis the asking price rose by 1.5% in the month indicating that there is an emerging confidence amongst sellers of stronger prices.
There is a seasonal trend that sees asking price rise in the early spring each year, this year that seasonal rise is somewhat more significant and could result in a new peak of asking price.