Property prices reach new high

Home sellers may want more, but buyers are not keen to pay.

That is the trend revealed by Realestate.co.nz, a property listings website, which said that while the average asking price for houses on the market rose 8.8 per cent to a new high last month, sale prices went up at a much more modest rate.

Realestate.co.nz reported that asking prices were rising nationally, with the number of new listings up 14 per cent from January, seasonally adjusted.

"The test will come as to whether these price expectations result in higher selling prices or if the level of buyer demand is prepared to meet these expectations," said chief executive Alastair Helm.

ANZ National Bank chief economist Cameron Bagrie said the New Zealand property market was "going nowhere" this year.

According to Real Estate Institute data, the average sale price for residential properties nationwide was flat in January from a month earlier, and in December the average number of houses sold dropped 3.4 per cent.

"When prices start to pick up people start to look at relisting with new prices and naturally they like to get as much as they can.

"With more stock on the market buyers will be able to pick and choose a little bit, so I think there is going to be a little bit more buyer- seller tension."

Mr Bagrie said for the rest of this year the property market would experience "mini-cycles", with prices lifting for three months then dipping or staying flat for the next three.

ASB economist Jane Turner said although there was a 10 per cent lift in new listings of houses last month as the market started to respond to tight conditions in some areas, the level of new listings was still relatively low.

"Overall, the housing market remains tight, particularly in Auckland. We continue to expect house prices to rise over 2012, reflecting these supply shortages."

Nationally, asking prices showed significant variations. Auckland asking prices last month rose 2.6 per cent from January to $554,094; Wellington prices were up 1.2 per cent to $450,232 on average, and Canterbury homeowners asked for 1 per cent more at $376,733.

"Nationally, the New Zealand property market is pretty splintered in terms of what's going on: there are massive regional divergences," Mr Bagrie said.

Source: http://www.stuff.co.nz/dominion-post/business/residential-property/6506565/Property-prices-reach-new-high