Lean pickings off thin listings

Photo / File

New listing activity has started to pick up but unless there are far more than we saw last year then supply is likely to remain less than demand.

Low interest rates coupled with a shortage of listings, strong migration and high buyer interest at open homes means it's likely that home values will continue to rise as the Auckland housing market heads into the annual peak sales months of February and March.

The latest QV Residential Price Movement Index figures show Auckland home values rose 4.3 per cent during the last three months of 2014, which is faster than any quarter during the 2003 to 2007 boom.

A closer look around the city shows values in the old Auckland City boundary have accelerated recently with Auckland City South rising a whopping 6.6 per cent in the three months to December; Auckland City East up 5.8 per cent and Auckland City Central increasing by 3.8 per cent over the same period.

Hot suburbs include One Tree Hill, Otahuhu, Waterview and Avondale as people continue to look further out for more affordable houses that still offer good proximity to the city centre.

In the West, Waitakere City home values rose 4.4 per cent in the three months to December. Hot spots include Te Atatu South, Glendene, Henderson and Massey, all of which offer relatively good value for money.

In Manukau, home values in North Western areas rose 5.8 per cent in the last three months of the year; while Manukau Central values rose 2.3 per cent and Manukau's Eastern Bays were up 1.8 per cent over the same period.

Hot spots include Flat Bush, Pakuranga, Howick, Mangere, Mangere Bridge and Otara.

Over the bridge, home values also accelerated with some areas up more than others.

North Shore-Onewa increased 6.6 per cent in the last quarter of 2014. Demand for property in top school zones continues to be a factor in value rises here. North Shore-North Harbour home values rose 3.2 per cent; North Shore-Coastal was up 1.7 per cent and Rodney District values increased 0.9 per cent over the same period.

Hot suburbs included Forrest Hill, Hillcrest and Glenfield.

Although there was a usual seasonal increase in new listings with the coming of spring, the increased sales activity at the end of the year outstripped this new supply meaning that total listings have once again dropped back, making it lean pickings for buyers.

New listing activity has started to pick up but unless there are far more than we saw last year then supply is likely to remain less than demand.

The expectation is that house sales turnover will remain buoyant in the first few months of this year. However, the lack of listings is likely to continue to constrain the market.

Andrea Rush is National Spokeswoman at QV.