House prices down slightly in Auckland, but housing shortage looms

The asking price for the Auckland average house fell by 2% in July to $NZ522,803, but Auckland home buyers are facing a looming shortage of available properties.

Despite the small drop in prices, the New Zealand Real Estate Institute is heralding a return to a sellers’ market, given the speed at which houses are now being purchased.

There were 8966 new listings in July, 11% fewer than the same month last year, but the estimated time to sell has decreased.

The number of weeks to clear available inventory was down to 24 weeks, some 33% lower year on year, which realestate.co.nz chief executive Alistair Helm said indicated an emerging sellers’ market.

At the end of July the available inventory was 10,685 properties across Auckland, Helm says.

"In the space of four months, Auckland has moved from being a buyer's to a seller's market," Helm says.

"If you go back to the early part of the year you had inventories up at about 50 weeks, well above long-term average."

The NZ national average for clearing inventory was down 18% year on year to 38 weeks.

"Auckland remains the epicentre of this trend and where available inventory of property for sale is the lowest seen since this recent property malaise began back in 2007," said the report .

There were only 295 new listings in Auckland's apartment market - a 15% fall year on year - with an average asking price of $340,344.