Ray White Now New Zealand 19.10.2020 Version 22 - 19 October 2020 - Page 7

The report also looked at supply and demand through the industry inventory levels , which is the amount of property available for sale across New Zealand . Overall , the total number of properties available for sale has decreased by 17 per cent in the last 12 months with the available properties being 17,576 , which is a decrease of 3,598 properties available compared to this time 12 months ago . This is the lowest level of inventory since records began . Combined with this the average number of days a property now takes to sell is 32 , which is a decrease of 15 per cent , and that is also putting continued pressure on the market with the high level of auctions being selected as the preferred method of marketing .
Our real-time data shows a position which has changed slightly over the past week with sales continuing to increase , being 38.04 per cent ahead in numbers at a level of 1,732 sales . There is a disparity in the supply of new listings coming to the market which are currently up 8.7 per cent with live listings showing at 2,062 .
In previous weeks ’ we ’ ve also emphasised the Reserve Bank indicating the level of withdrawals from KiwiSaver funds continues to increase from predominantly first home buyers coming into the market with their funds that have been saved with the view of home purchasing . This is now considered to be the ideal time to utilise these funds for a deposit given the reduction in LVRs and to apply for the low cost of borrowing and affordability .
In the majority of cases there is no doubt that bringing property to the market at the moment achieves a greater success . With the sales rates also being at their highest percentage and with record medium prices being achieved , sellers can come to the market with confidence when creating competition .
Number of KiwiSaver fund withdrawals by withdrawal reason each financial year
The strong demand from buyers is potentially only going to increase . With the government being confirmed over the weekend , this will quickly allow the financial markets to assess the position moving forward . In the last week we have seen the first mainstream bank offer one-year rates below 2 per cent and while we expect other banks to match this new retail offering , the long-term view is that interest rates will stay low for the medium term , being around 18 months to 3 years .
Source : ird . govt . nz / about-us / tax-statistics / kiwisaver / withdrawals / number
“ Coming into the summer months we are seeing an increase of enquiry from first home buyers across our market . The prices we are achieving for sellers in our auction room have been outstanding and this is a process of creating competition for each and every property we market .”
Tom Rawson , Lead Manager on behalf of AT Realty with Ray White offices in Manurewa , Manukau , Mangere Bridge and Mangere .