The number of homes listed for sale on realestate.co.nz hit an all-time low in July (file photo).
photograph: RNZ / Alexander Robertson
Very few new homes are being listed as potential buyers remain wary of committing to high prices and interest rates, according to realestate.co.nz.
The number of new listings in July hit a record low of 6,156, about half the number since 2007, when the company's records began.
Inventory also decreased in 10 out of 19 regions compared to the same month last year, and the total number of homes sold nationwide in July was only 23,090. This is a 12.4% decrease compared to July 2022.
According to the report, the national average asking price is just under $870,000, which has remained stable since the beginning of the year, but has fallen by more than $100,000 since the real estate market peak in January 2022.
“The fact that last month's OCR (Official Cash Rate) was flat for the first time since August 2021 may also have provided New Zealanders with some reassurance given the current climate,” the spokesperson said. Vanessa Williams said.
“I would like to add that since this announcement, banks have increased retail lending rates to around 7%.”
However, the Central Otago Lake District bucked this trend, with the average asking price hitting an all-time high of over $1.5 million.
Williams said that unlike other parts of the country, average asking prices in the region have been trending upward since the beginning of 2022.
“Demand in the region remains strong, with many buyers based overseas and likely less affected by rising interest rates and household inflation.”
*This story has been updated to correct realestate.co.nz data. U.S. stock prices fell 12.4% year-over-year in July, rather than the 2.8% rise that was originally announced.
