1 Feb 2011

House sale listings plunge

3:53 pm on 1 February 2011

The number of residential properties listed for sale has plunged, with homeowners delaying selling their homes in a weak market.

A monthly report by property listing website realestate.co.nz shows new listings fell to 8,300 in January, a 19% drop compared to the same month last year.

It is the lowest monthly number on record since the company started collecting the figures in 2006, and comes a day after news of the lowest level of permits for new homes in December in 45 years.

Despite the low level of listings, demand remains fickle with the stock of unsold houses remaining above 53,000 and the average asking price down 3% to about $406,500.

The website's chief executive, Alistair Helm, says paradoxically, more people are now browsing real estate websites online, which he takes to mean the intent to buy is there.

Mr Helm says prices are not collapsing and there is no flood of properties on the market, which he says could mean activity steps up in the traditionally busy months of March and April.

At the current rate of sales, it will take about 48 weeks to clear the backlog of houses.