The pool of new listings of properties for sale in Canterbury shrank about 20 per cent last month, with the industry calling it a seller's market.

It was a similar story around much of New Zealand where overall the number of new listings in June fell by 16 per cent to 9689, says the realestate.co.nz report for June.

The depletion of new listings means that if properties sold at the same rate, the pool of Canterbury properties would be sold in 16 weeks.

The asking price rose 2 per cent in Canterbury to a mean asking price of $389,618 in June from $383,504 in May and from $381,518 in April, the realestate.co.nz report said.

Ray White Metro real estate salesman Tony McPherson said demand for properties was "very good".

Buyers in June were a combination of red-zoners shifting from the east, first-home buyers and some newcomers to the city.

The snow in early June would have slowed down new listings, he said.

''People tend to think also that my house will look better in the spring.''

He expected listings to build up again.

''As we move to spring there is a normal increase,'' he said.

The Canterbury Earthquake Recovery Authority's decisions last week - 285 Port Hills properties were zoned red - would stimulate the market again.

Also pushing sales were first-home buyers.

''It's never been cheaper to have a mortgage,'' McPherson said.

Comparing the cost of renting a property and the cost of a mortgage, ''if you've got a deposit it's a good time to get into it''.

''We do have some investors coming back into the market as well,'' he said.

- © Fairfax NZ News

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