Demand is outstripping supply in New Zealand’s main centre residential property market.

Over the last three months nationwide the number of new listings, at approximately 30,000, has remained the same but the number of sales has increased 22% - indicating demand is ahead of supply, creating a seller’s market.

In January there were 8542 new listings, up 3% on last January but down 2% on December’s 8,732 new listings. For the year 2011 there was just under 125,000 new listings, down 9% on 135,000 in 2010. 

The mean seasonally adjusted asking price remained stable moving down 1% from December to $417,740 and moving up 1% from the same month last year. This is 2% less than October’s peak of $425,936.

The inventory, measured in number of weeks of equivalent sales, continued to shorten dropping 25% from January 2011 to 36.4 days and decreasing 3% on the previous December. 

Asking prices remained high in Auckland at $540,187, down 1% both month-on-month and year-on-year.

New listings recovered slightly in the region after plummeting in December, creeping up 2% to 2,558.

Inventory was at 23.6 weeks, down 4% from December and down 34% from January last year.

Wellington asking prices increased 3% from December to $444,900, up 4% on last January. The number of new listings increased 22% from 571 in December to 697 in January, up 8% January 2010. Month-on-month inventory increased 1% from 21.4 weeks to 21.6 weeks and was 5% down on January last year.

Asking prices in Canterbury continued an upward trend, increasing 1% from December to $374,123 and were up 6% from January last year. New listings increased 4% from December up to 1039, up 10% from the same month last year. Inventory dropped from 22.4 weeks in December to 21.7 weeks in January and was down 39% from the same month in 2010.