Property prices in record fall

The national average asking price for a property saw a record-breaking drop last month, falling 3%, or $24,550, in just four weeks, according to the Trade Me Property Price Index.

Trade Me Property sales director Gavin Lloyd said that after creeping closer to the $1 million mark over the past 12 months, the average asking price for a property in New Zealand dropped to $925,150 last month.

This was significantly lower than the all-time high of $971,450 seen in March.

‘‘The national average asking price has not been this low since October 2021, and this marks the second record-breaking price drop in a row following May’s 2% monthon-month dip,’’ Lloyd said.

The largest average asking price drops were in the main centres.

‘‘In the Auckland region, the average asking price fell 4% monthon-month, while the Wellington region was not far behind with a 3 per cent drop.’’

The Wellington region saw an average asking price of $936,300 last month, and although it marked a drop on May, it was an 8% increase when compared with the equivalent month in 2021.

Lloyd said the only regions to buck the trend were Otago and Taranaki, where the average asking prices increased by 2% and 1%, respectively, when compared with May.

When compared with June 2021, last month’s average asking price marked a 12% increase, Lloyd said.

‘‘While this is still a significant increase, it’s the smallest annual percentage jump we’ve seen since November 2020,’’ he said.

Amajor factor behind the price drops was continued strong growth in supply in June, up 52% year-onyear nationwide.

The skyrocketing growth in supply was the largest percentage jump yet recorded by Trade Me Property.

While supply surged in Wellington last month, demand in the region grew by just 1% year-onyear.

Around the country, every region saw more properties for sale last month when compared with the equivalent month last year. The largest supply increases were in Wellington (up 93%), Hawke’s Bay (up 90%), Bay of Plenty and Nelson/ Tasman (both up 85%).

Nationwide demand also fell in June by 7% year-on-year, which saw the market ‘‘cool off’’ further and accelerated price drops.