Sellers dropping prices as market reaches tipping point

Sellers are being forced to cut their asking prices as a glut of unsold properties produces sluggish sales in the residential sector.

The average asking price for sellers fell 3.6 per cent to $407,349 during May, while the number of sales dropped by more than 1000 in April when compared to the same time last year, latest figures from Realestate.co.nz's NZ Property Report show.

The current asking price is five per cent below the peak of the market in October 2007.

The change indicated sellers were finally starting to drop asking prices to solicit more interest from buyers.

Realestate.co.nz chief executive Alistair Helm said sellers with new listings recognised the need to be aggressive on price with the large volume of property available.

"While we've not seen a deluge of cheap property for sale, it does appear that we've peaked on price and there's an opportunity here for buyers.

To read the full NZ Herald article, click here

Posted: 1 Jun 2010

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