Quake wipes out spring property sales surge

Photo / Martin Sykes

A lift in new listings has failed to kick-start a sluggish year for property, as the Canterbury earthquake took its toll.

Realestate.co.nz's September property report shows only 10,559 new properties came onto the market in New Zealand last month, fewer than in the winter months of either June or July and up only 8 per cent on August.

The September figure is also well down on the same month last year, a decrease of 17 per cent.

Realestate.co.nz's Alistair Helm said September was a pivotal month for the property sector.

"Traditionally, there is a much-anticipated rise in new listings in Spring, however the September figures this year point to a modest increase in line with the overall context of a subdued property market throughout 2010," he said.

The Christchurch earthquake had a considerable impact on the property market there, with just 1211 new listings added in the month, down a seasonally adjusted 20 per cent on the month prior.

With sales activity remaining subdued, the already high inventory of unsold houses nationwide edged up further in September to 47.5 weeks from 46.1 weeks in August.

The Coromandel recorded the highest level of inventory of any region with more than 2002 unsold properties on the market there - representing 289 weeks, or more than five and a half years of sales.

Inventory is measured by the number of weeks of sales necessary to clear properties on the market at any one time.

With consolidated long-term data indicating 39 weeks to be the national threshold between a market favourable to either sellers or buyers, current inventory levels indicate that most parts of New Zealand remain a buyer's market, Helm said.

The national asking price increased 1.8 per cent to $411,745, compared to the three months prior, although pricing expectations varied widely across the regions.

The largest increase in asking price was recorded in Otago which at $293,362 was an all time high, higher than the peak of the market in October 2007.

Other large increases were noted in the Central North Island, Manawatu and Gisborne.

The largest falls in asking price were recorded Central Otago/Lakes (-14.1 per cent) the Coromandel (-12.7 per cent) and Hawkes Bay (-6.6 per cent).

- NZ HERALD ONLINE