Housing market cools as holiday season draws near

Home buyers are looking away from the big cities and towards the regions, potentially for holiday homes.
PETER MEECHAM/FAIRFAX NZ

Home buyers are looking away from the big cities and towards the regions, potentially for holiday homes.

The national housing market is cooling as Kiwis turn their attention to the holiday season.

Statistics from Realestate.co.nz over the past three months showed a cooling across the main centres, most noticeably in Auckland.

Despite the cooling, asking prices in Auckland hit another record high of $947,141.

The national average was $613,643 for November.

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Demand was measured by the average number of views per listing for September, October and November and then compared to the same time in 2015.

Realestate.co.nz chief executive Brendon Skipper said Auckland was the only region where demand was down on the same period as last year, falling 8.1 per cent.

"A slowing rate of growth and a decrease in demand means properties in Auckland are sitting on the market for longer. In turn, this means more options for buyers.

"The average asking price in Auckland is growing at a more modest pace, while properties are taking longer to turn over. If this trend continues, there will be more choices available for Auckland buyers in the foreseeable future."

The Coromandel, Marlborough and Nelson had spikes in asking price in November, up 8.4 per cent, 8.2 per cent and 17.4 per cent respectively.

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Skipper said it seemed that more Kiwis were looking at investing in a bach or holiday home.

"But Kiwis who were looking to buy a holiday pad in the Coromandel in November may have struggled to find one, as the region recorded a drop in new listings in this region."

New listings in the Coromandel were down 39 per cent compared to the same time last year.

The Manawatu and Wanganui regions were in hot demand, where in November the region saw the highest percentage increase in the country of new property listings compared with the same month last year.

The 17.1 per cent increase in new listings came with an average asking price of $291,292.

"Remarkably, properties are turning over more quickly in this region compared to Auckland," Skipper said.

 - Stuff

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