The average asking price for an Auckland property fell 1.6 per cent in the year to July, landing at $895,500 and its lowest point in almost 12 months, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said this was the first time since September 2017 that the average asking price in Auckland had fallen below $900,000, a sign that the Auckland market was retreating.
“After the leaps and bounds the Auckland property market has become accustomed to over the last four years, we’re finally seeing prices start to ease which is great news for those on the house hunt.
“The Auckland region saw a surge of new listings come onto the market in July, up 7 per cent on last year and 42 per cent more than when the market peaked in July 2016.”
Mr Jeffries said the average number of views of a listing in the first two days onsite was down 7 per cent on a year ago in a perfect storm for first home buyers. “With falling prices, a dip in demand and more stock on the market, now is the time to make a move in the Super City if you have the deposit in the bank.”
Mr Jeffries said apartments in the Auckland region bucked the trend and hit a new high of $661,700 in July, up a solid 7.7 per cent on last year. “Urban property options, particularly apartments, are still extremely popular with buyers because they’re more affordable. While the Auckland market has slowed, we’re still seeing huge demand for properties which make a great first step onto the property ladder or a good investment.”
Mr Jeffries said despite property prices falling in the Super City, sellers and homeowners shouldn’t panic. “It can be unsettling for homeowners to see the value of their biggest asset shrink, but this is all part of a dynamic property market. Auckland’s growth in the last five years couldn’t continue indefinitely. We think we’ll see a bit of a stagnant period continuing in the next few month.
National average asking price falls
As temperatures dropped in July, so did the national average asking price, falling 1.4 per cent on June to $632,800 and driven by a 1.8 per cent dip in the Auckland region.
Mr Jeffries said two regions continued to heat up in July. “The Nelson/Tasman region charged on to reach a new record asking price of $595,500, up 12.5 per cent on last year. It was second only to Hawke’s Bay which led the way with the average asking price up a staggering 23.2 per cent to $545,100.
“Even in the middle of winter when demand is typically at its lowest, there has been a surge of interest in some regions. The average number of views in Taranaki was up 25 per cent on 2017, along with a 16 per cent boost in Otago and 13 per cent lift in Manawatu/Whanganui.
Wellington bucks the trend
Mr Jeffries said Wellington bucked the national trend after the average asking price rose 0.2 per cent on June to $581,500.
“There are plenty of buyers actively looking at properties in the capital; evidenced by a 15 per cent increase in the number of properties being watchlisted compared to last year.
The most popular property on Trade Me in July was a one-bedroom apartment in Wellington central which received 158 enquiries in the month of July.
“The Wellington property market is showing no sign of slowing down, even at this time of year when we expect prices to dip. The coming six months will be an interesting time for the capital and we could see average asking prices crack $600,000 for the first time,” Mr Jeffries said.
Houses outside Auckland grow
The average asking price for large (5+ bedrooms), medium (3-4 bedrooms) and small houses (1-2 bedrooms) in Auckland took a hit in July, falling 3.2 per cent, 1.9 per cent and 4.5 per cent respectively.
Meanwhile across the rest of New Zealand, large houses were up 7.7 per cent on last year, medium houses grew 4.7 per cent and small houses were up a solid 6.8 per cent.
Townhouses reach new record
“Townhouses in Christchurch and Wellington reached record average asking prices in July, with Christchurch up a solid 6.8 per cent on last year to $467,600 and Wellington up 17.7 per cent to reach $536,050,” he said.
About the Trade Me Property Price Index:
The Trade Me Property Price Index measures trends in the expectations of selling prices for residential property listings added to Trade Me Property by real estate agents and private sellers over the past three months.
It provides buyers, sellers and realtors with insights into ‘for sale’ price trends by property type and property size.
The Index is produced from data on properties listed on Trade Me Property in the three months leading up to the last day of each period. Each period’s value is a truncated mean of the complete three months’ worth of listings. This is to better reflect trends in property prices rather than month-to-month fluctuations in housing stock.
The Index uses an “80% truncated mean” of the expected sale price to calculate the average asking price. This excludes the upper and lower 10% of listings by price, and averages the expected sale prices of the remaining properties.
It provides an insight into ‘for sale’ price trends by type and size of property. Other reports aggregate property price data across these various properties.