Listings up as house prices fall, index says
The number of properties for sale across the country had the biggest annual jump on record in July, while prices continued to drop, according to the latest Trade Me Property price index.
Trade Me Property sales director Gavin Lloyd said that last month nationwide supply spiked by 54% compared with July 2021.
‘‘The market has well and truly flipped, and we have now seen property supply increase year-on-year for eight months straight.’’
July marked the second month in a row where nationwide listing numbers jumped by more than 50% year-on-year. Every region had an increase in the number of properties for sale compared with the same month last year.
While supply increased across the board, Lloyd said some spots saw a bigger shift than others.
Nelson/Tasman and Hawke’s Bay were the standouts, with supply in both regions almost doubling in July when compared with the same month last year. ‘‘The Wellington region was not far behind, seeing supply jump by 90% in July when compared with 12 months ago.’’
Lloyd said that nationwide demand fell by 5% year-on-year. The largest demand drops in July were in the Canterbury (15%), West Coast (15%) and Auckland (14%) regions.
Coupling of high supply with comparatively low demand had resulted in price increases slowing down over the past few months, Lloyd said. The national average asking price was $910,450 in July, down 2% compared with June.
‘‘After peaking at $971,450 in March, July marked the third month in a row where we saw prices fall from the month prior,’’ he said.
The largest month-on-month average asking price drops were in
Gisborne (6%), Hawke’s Bay (3%), Wellington (3%) and the Bay of Plenty (3%). Compared with July last year, the national average asking price climbed by 9%.
‘‘While this is still tough for house hunters, it is the smallest year-on-year percentage increase we have seen in 24 months.’’ Lloyd said prices might fall even further.
‘‘We are seeing a significantly higher number of properties for sale during what are typically quiet winter months than we have seen over the past couple of summers, when we would usually expect to see the market at its peak.
‘‘It is going to be very interesting to see what happens as the weather warms up.
‘‘If supply increases even further while demand remains low, we may well see prices continue to cool off,’’ Lloyd said.
‘‘This would make for a more approachable market, particularly for those looking to get a foot on the property ladder for the first time.’’
‘‘The market has well and truly flipped.’’