Stocks of homes for sale in New Zealand have fallen sharply again, turning the national property market in favour of sellers for the first time in two years.

Data released by realestate.co.nz today shows the inventory of properties for sale across the country in June fell by 10 per cent on the previous month, following higher levels of sales and low numbers of new listings.

There were 9111 new properties listed across New Zealand in June, down from 9898 in May. The level of unsold houses on the market at the end of June was 47,738 down from 48,352 in May and 50,398 in April.

The drop has resulted in the inventory of available properties on the New Zealand market approaching the long-term average – measured by the number of weeks it would take to sell all the properties – for the first time in two years.

The report shows inventory at 42.1 weeks, while the long-term average is 41 weeks.

Meanwhile, the average asking price remained steady at $415,053, up slightly from $414,308 last month, and down 2 per cent from earlier in the year.

Realestate.co.nz chief executive Alistair Helm said the shift in the market that was seen in Auckland last month was now being reflected in other main centres including Wellington and Otago, as well as in regions including Bay of Plenty, Queenstown, Waikato and Nelson.

“These are regions that have not been sellers’ markets for a very long time. If things continue, it’s likely that we will see a shortage of listings to meet buyer demand grow even further.”

Helm said the latest figures were similar to the trend that occurred when the property market responded to economic pressures following the onset of the global financial crisis in 2009.

“With the country is now delicately poised on the long term average of inventory, and ongoing shortage of available properties looks very possible,” he said.

– NZ HERALD ONLINE