Ray White Now 2022 - May New Zealand | Page 6

Coming back to the real estate market , this has had an immediate effect . When past markets may have seen a slowing of various indicators , since February 2022 , there has been a quick and considerable decline in the number of sales that have taken place . While there is increasing evidence of falling prices , the combination of increasing interest rates , an expectation of high inflation , and concerns around the economy have had a compounding effect on the real estate market .
Changing outlooks for sellers have resulted in adjustments of price expectations to meet the buyer ’ s expectation of price . The supply of property has lifted more than 45 per cent in the last 12 months ; emphasised in the last quarter with an increase of 36 per cent more properties available for purchasers to view . When you add on top of this that there are fewer sales in the market , this has meant a record number of properties on the market , being 70.1 per cent higher than the same time last year . Supply has increased , and demand has dropped , resulting in fewer sales and sellers realigning their sale price expectations .
Listings on the market
Monthly - NZ
Source : Ray White
The above graph shows the number of properties currently on the market is 5,432 , while at the same time last year we had 3,182 properties available . This allows purchasers not only to take their time , but also to realise there are value comparisons in the market where 12 months ago there were not .
The market certainly has been different in the last two years . Today we sit in a more normalised market rather than the comparisons of 12 months ago . While it is easy to suggest that prices are falling and market supply has increased , pricing prior to the pandemic and stock levels were much more normalised . While prices still have a much higher value than two years ago , the normalisation of stock levels is closer . This is likely to continue across New Zealand ; there will be approximately 25,000 properties available for sale with a long-term average inventory of approximately 12 weeks . This would indicate a much more balanced market favouring those seeking value by comparison . Those who are positively marketing their property can expect reasonable buyer depth to respond to properties considered reasonable value .