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'Properties taking almost three weeks longer to sell than last year'

Contributor:
Fuseworks Media
Fuseworks Media

Kiwi homes are now taking significantly longer to sell than they were 12 months ago, with the average property listed onsite for 51 days in April, up 56 per cent year-on-year according to the latest Trade Me Property data.

Trade Me Property Sales Director Gavin Lloyd said they had analysed the time a property spends onsite to determine how fast they’re selling. "We’ve seen a dramatic jump in the amount of time properties are listed onsite, up from 31 days in April last year, suggesting the market is cooling off after running hot over the past couple of years."

In April, Mr Lloyd said properties in the Nelson/Tasman properties sold the fastest, with listings onsite for an average of 40 days in the region. "Canterbury followed closely, with an average listing duration of 43 days last month."

Mr Lloyd said even in the past month, the market has shown signs of slowing down. "If we look at March data, properties were listed onsite for an average of 42 days, meaning last month’s numbers show a 21 per cent increase in four weeks alone."

Despite the jumps, Mr Lloyd said properties are still selling faster than they were pre-Covid. "Going back to April 2019, before the pandemic sent shock waves through the market, the average amount of time properties remained onsite was 55 days - longer than we are seeing now.

"What we’re seeing is likely a case of the market finding its rhythm again after feeling the impacts of Covid, with factors like access to finance and changing interest rates seeing it fluctuate dramatically since early 2020."

Mr Lloyd said the longer listing duration did not appear to have had an impact on prices. "The national average asking price grew by 18 per cent year-on-year to reach $965,800 in April, showing sellers are still willing to wait it out to get the money they want."

Main centre property sales slower than the national average

In two of our main centres, properties were taking an average of 55 days to sell last month, four days longer than the nationwide average. "In the Auckland region this marks a 77 per cent increase when compared with the same month in 2021, when properties took 31 days to sell.

"In the Wellington region, last month’s average of 55 days marks a whopping 129 per cent jump - the largest in the country - from April 2021 when properties in the region sold in just 24 days on average."

Mr Lloyd puts this down to the Wellington market beginning to take its foot off the accelerator after a sustained period of intense growth. "Over the past few years, the Capital has really experienced a boom in demand for properties beyond what we have seen anywhere else in the country. This massive jump in the amount of time properties are onsite is a sign the region’s market is levelling off and falling in line with other regions."

Hawke’s Bay and ManawatÅ«/Whanganui properties take the longest time to sell

Mr Lloyd said the two regions where properties took the longest to sell in April were Hawke’s Bay and ManawatÅ«/Whanganui. "In both central North Island spots, properties took an average of 57 days to sell last month.

"This is really significant if we look back to the same month last year, when properties in these two regions were selling like hotcakes." In April 2021 properties sold in an average of 26 days in Hawke’s Bay, and 28 days in ManawatÅ«/Whanganui.

Mr Lloyd said both regions have seen "phenomenal" price growth recently. "In April, both regions saw their average asking price jump 19 per cent year-on-year, reaching $644,350 in Manawatū/Whanganui and $825,950 in Hawke's Bay.

"No doubt these prices are making prospective buyers think carefully about purchasing properties in these regions and ultimately we’re seeing this reflected in our data as properties remain for sale for longer."

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