House prices on the rise
The property market is showing signs of stronger demand after a quiet start to spring, according to the Trade Me Property Price Index.
The election appeared to have compounded the effects of the normal winter market slowdown, with the average asking price stalling in September and the number of houses for sale at low levels that month.
In October, the national average asking price rose 0.9 per cent on a year earlier, to $623,700. Compared with September, the national price was up 2.7 per cent.
‘‘Usually by this time of year we expect to see the property market in full swing, but with the election in play it’s pushed everything back,’’ said Trade Me Property head Nigel Jeffries.
‘‘We’re starting to see some of the movement we’d normally expect in this peak buying and selling season.
‘‘It’s still too early to say if our new Labour-led Government has had any impact on property prices but we are seeing signs that the market is starting to revive from those election jitters,’’ he said.
The general election was held in late September, but negotiations to form a new government continued well into October. There were 30 per cent more listings in October than a month earlier, Jeffries said.
Auckland’s average asking price rose 2.2 per cent on the previous year to $916,900.
‘‘Since 2010, the number of houses for sale has dropped 58 per cent which has forced the average asking price up 88 per cent from a relatively tiny $487,250.
‘‘This is a perfect illustration of the housing shortage that Auckland is experiencing.
‘‘We estimate that Auckland is approximately 35,000 homes short at the moment and that’s only going to increase unless the Government’s ambitious building plans are realised,’’ he said.
In the Wellington region, the average asking price rose 11.7 per cent on last year to a new high of $548,500. Large houses for sale in the capital were on the market for an average of $973,550, a record.
The average asking price outside Auckland reached a new record in October of $490,900, up 6 per cent on last year.
The region with the biggest rise in asking price for the year was Hawke’s Bay, up 17.1 per cent.
In the South Island, Marlborough saw the highest annual increase of 12.5 per cent, to a record average asking price of $464,650.
There are signs the property market is recovering from election nerves, says Trade Me.