Asking prices rise as property listings increase

Year-on-year property listings grew for the first time this year and asking-price expectations have also risen slightly, suggesting the housing market is showing signs of recovery, says property website realestate.co.nz.

Its monthly NZ Property Report outlined the trend reversal, after six months of subdued price expectations. It showed year-on-year listings had grown 6 per cent for the first month this year.

Meanwhile, the number of new property listings for September shot up by 19 per cent, compared with August, with 12,674 homes now on the market.

Vendors' asking-price expectations on new listings also rose by 6 per cent on the month of August to $419,841, and were up 5 per cent on the previous three-month average. At the same time last year, the asking price of a new listing was $398,659.

However, despite the uplift throughout September, the level of new listings over the past 12 months fell 21 per cent to 134,873 from 172,711 in the previous 12 months spanning 2007 to 2008.

Alistair Helm, chief executive of realestate.co.nz, said the greater number of properties for sale was a possible sign people were confident of selling.

It could also be a precursor to a decrease over summer in the length of time it takes to sell a property.

"While we always expect an increase in both the number of listings and the price expectations during the spring/summer period, this relatively large jump on both figures is a strong indicator of improved health in the property market."

Mr Helm said the jump in asking prices was a good sign for the New Zealand property market and the economy as a whole as the country steps out of the recession.