In a recent post from realestate.co.nz we can see what is happening in our local real estate market. Real-time data from realestate.co.nz suggests that the regions long-term stock shortage will continue to pose challenges for the property market in coming months.
14-year record average asking prices increase were recorded in Nelson/Tasman, up 13.3% compared to May 2020, now showing an average of $817,440 for residential listings.
The housing stock also showing massive difference in numbers of property for sale for May 2021 at 214 residential properties (recorded on the penultimate day of each month, listings available on realestate.co.nz) a massive 45.9% decrease from May 2020.
New listings in May for Nelson/Tasman was 155, down 13.4% from May 2020 and considering May last year was in partial lockdown having a negative influence on new listings.
Inventory of listings is sitting at 6 weeks (at the current rate of sales it would take 6 weeks for all listings to be sold if no further properties were listed) compared to the average for the Nelson/Tasman region at 22. Compared to the whole of New Zealand this is sitting currently at 8 weeks and a historical average of 27.
The shortage of listings in Nelson/Tasman continues a trend that is common to a lot of New Zealand, however new listings were up in 10 of 19 regions in New Zealand during May, with Gisborne and Marlborough recording the biggest increases. This could become the trend also for Nelson/Tasman in the near future. Also according to Stats NZ, building consent numbers are at an all-time high with over 40,000 new homes consented during the year ended March 2021. Building is however being constrained by supply issues of building materials and labour.
Will this change any time soon? Listing stock has steadily been decreasing over the last decade, and at this point, it would take a flood of properties coming onto the market to reverse the current trend and bring the market back into more balance between buyer and seller.