Real estate agents in New Zealand are reporting that sales are up across the country; however, listings are not keeping up with the rate of interest among buyers. Sales volume has been rising since the first quarter of 2011 when sales increased 7%, followed by an 18% the next quarter and a 22% gain in the final quarter of the year. The market surged again in the opening month of 2012, jumping 29% in the first quarter. Now it appears the demand has significantly depleted supply and that new homes for sale are not coming onto the market fast enough to satisfy the market. For more on this continue reading the following article from Property Wire.
Residential property sales in New Zealand have taken off in the first quarter of 2012 but listings have been slow to respond, according to estate agents.
The quarterly analysis of the property market from agents site realestate.co.nz shows that year on year sales growth has been in positive territory and growing at an accelerated rate for four consecutive quarters.
It all began a year ago, when in the second quarter of 2011 year on year sales grew by 7%. The next quarter this grew to 18% and then in the final quarter of 2011 the sales of property really accelerated to 22%.
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The start of 2012 has seen this growth accelerate again with a 29% growth. This growth represents 3,969 more properties sold in the first three months of 2012 than compared to the same time last year, an extra 44 properties a day being sold.
This rise in sales is not being matched as yet by a rise in new listings. In the first three months of 2012 there has been an increase, but only a 10% increase. ‘That is not approaching the consistent rise in property sales that has been seen over the past year,’ said chief executive officer Alistair Helm.
‘This clearly demonstrates the lag that occurs between sales activity as a measure of demand in the property market and the resulting supply side reaction, usually a six months lag,’ he explained.
Around the country, across the 19 regions tracked by the Real Estate Institute of New Zealand and Realestate.co.nz the picture in the majority of regions is consistent, listings lagging the rise in sales.
The only region where this is not happening is the Coromandel where there are weaker sales and declining listings.
This article was republished with permission from Property Wire.