Properties Start Selling Faster And Prices Increase As Market Reaches Turning Point

Friday, 15 September 2023, 7:26 am
Press Release: Trade Me Property

Properties for sale in New Zealand are spending less time on the market and prices have increased for the first time in 10 months, according to the latest Trade Me Property Price Index.  

We measure days onsite as a key indicator of how the property market is tracking, said Trade Me Property Sales Director Gavin Lloyd. “In a hot market, like we saw in 2021, properties were selling extremely quickly with the median days onsite dropping to just 28 days.

“We well and truly hit the bottom of the market in July this year with properties spending 74 days onsite while the national average asking price reached its lowest point since June 2021. 

“August, however, was a turning point.” 

After the median days onsite steadily increased throughout the year, August saw this retreat to 68 days, falling six days when compared to July. This wasn’t the only sign that the market had bounced back with vendors moving towards less price transparent methods of sale, said Mr Lloyd. 

“We often see the method of sale for a property change depending on market conditions. In a hot market, when demand is high and supply is low, we tend to see vendors move towards less price transparent selling methods like auctions and tenders. In a cool market, vendors are more transparent about the price they want and therefore opt for methods like enquiries over or asking price.

“In August we saw a small but noticeable shift towards less price transparent methods of sale with auctions making up 19 per cent of total listings, up from 10 per cent in July. The total number of properties listed with an asking price fell from 35 per cent in July to 26 per cent in August.” 

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The original article can be found here