According to the May NZ Property Report, the number of new property listings have declined for the third month in a row, with listings in May dropping a further -5% in April.

Listings are now down by -29% since the same time last year. Asking prices are also down in May, 1% below those in April and 6% down on the market’s peak in October 2007.

But according to Alistair Helm, NZPR’s chief executive, prices are softening rather than collapsing and 2008 was a dormant period with many properties just sitting on the market.

However, in Australia first time buyers are boosting the property market helped by low interest rates and Government grants. According to Yvonne Chan, head of research at Australian Property Monitors, monthly auction figures for the year showed clearance rates were back to the levels they were in 2007. But there is concern that buyers, other than those seeking their first home, need to start entering the market if there is to be a recovery.