The latest figures from property website Realestate.co.nz suggest the balance between buyers and sellers is continuing to shift, potentially giving purchasers greater negotiating power. The number of new property listings fell by 4.5 per cent nationally compared with the same period last year, but the total number of homes available for sale increased by 11.4 per cent.
There were 37,433 properties available nationally, the highest October figure since 2014. Auckland saw a 14.1 per cent annual increase in available stock, bringing the total number of properties for sale in the region to 15,046.
Despite the growing number of homes available, new listings declined across much of the country. The Coromandel experienced the largest annual fall at 16.1 per cent, followed by Northland at 15.2 per cent and Central North Island at 10.8 per cent. Auckland recorded a 7.9 per cent decline.
Industry representatives suggest uncertainty surrounding the upcoming election and international economic conditions may be encouraging some homeowners to delay selling their properties. National asking prices also fell by 2.7 per cent. This indicates that sellers may be adjusting their expectations to attract buyers.
The proportion of homes auctioned has fallen to its lowest level in seven years. Auctions generally become more attractive when buyer demand is strong, so the decline may reflect greater caution among sellers and less competition between purchasers.
What This Means for Individuals, Investors or Small Business Owners
Increased housing stock and lower asking prices may create opportunities to negotiate better purchase prices. Property investors may find greater choice when searching for rental properties, although they should carefully assess rental demand and potential capital growth. Homeowners considering selling may need to adjust their price expectations and allow additional time for a sale.
What This Means for Tax, Record-Keeping and Compliance
New Zealand property owners should understand the bright-line property rules, which may affect the taxation of property sales profits. Rental property owners should maintain accurate records of rental income and other deductible expenses.
Practical Actions to Discuss with Your Accountant
Investors should review rental income forecasts and expected cash flow. Anyone selling an investment property should check whether the bright-line rules apply before committing to a transaction.
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Disclaimer:The information in this article is general in nature and does not constitute financial, investment, taxation, legal or accounting advice. Readers should obtain professional advice relevant to their individual circumstances before acting on any information contained in this publication.
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