Both Markets in oversupply?

Lower Hutt

Sales InventoryAs previously noted, I only record sales data for Wellington, but it turns out that Lower Hutt and Wellington are the canary in the coal-mine. Listings have recently been at all time highs, but appear to have set a limit and are retreating.

Rentals Inventory: -However listings for rentals are now soaring to new levels as well. Has the new build demand now hit a rental demand shortage and too few tenants are chasing properties? I suspect that is the case.

The market may be shouting now, not only is there too many properties for sale, and too many properties being offered to rent, but house sales prices are falling in Wellington - about $130,000 so far for a $1.3m property, ie 10%. Data for rentals is also in, so I have details now.

I have a hint from Eastbourne where rents stopped rising back in 2021;

Wellington City

I collect rental prices for all suburbs within the green belt, and this is what they currently look like:

Median rents were up in February by 6.5%, $627 in May 2021 to $668 in February 2022, but now down to $660pw in April. Its even worse for the upper quartile.

What about sale prices? I only have Homes detail in the form of a chart from their blog, they do not publish the data behind the chart. This suggests that prices are dropping quickly, using their data for Eastbourne you can see prices have dropped more - 10% ($1.3m home is now down by $130k). The suburb or city valuations on Homes is far more likely to be accurate than an individual home.

The chart shows the YoY increase as at June 2022 for each city, as well as the trend for each City

Check out similar stats for Wellington here

Jonette 2011