Auckland Market Turning? Wellington now Short of Listings?

Taking a look at the level of demand for rentals in both Auckland and Wellington compared to previous years, very different patterns emerge:

Auckland has a very high level of listings on Trademe, but the numbers are dropping from a high of 30% above the seasonal pattern to just 20% this month. Does that mean investors have reached their comfortable level of purchasing or is it just the market supply starting to push rental prices down and thus potential yields below purchase prices?

Note that the cry of queues for rentals stopped over a year ago, probably when the green line went positive and investors rushed to buy to fill the gap, but real data like this is not available anywhere else, which makes the process of identifying supply/demand balance slow to happen and so it fails to have any effect

Wellington is well ahead on this criteria, with listings just below the seasonal pattern, suggesting a supply constraint shifting into the market. Anecdotally this change has made filling vacancies much easier at present for some properties, if it continues, prices will likely rise. They are rising already in some suburbs, but it looks likely to extend to others.

Jonette 2011