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.

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