House asking prices slump
People listing their houses for sale on Trade Me are asking an average $61,000 less than they were in March.
The site has released its latest property data, showing a drop across the country and more significant falls in some areas.
The national average asking price settled at $910,450 in July, down 6% from its peak.
‘‘Over the past two years we saw the national average asking price edge closer to $1 million, peaking at $971,450 earlier this year, before making a U-turn in April,’’ sales director Gavin Lloyd said.
‘‘As the saying goes, what goes up must come down, and the regions that have seen the biggest price growth over the past few years are now seeing the steepest declines.’’
Auckland had had the biggest price drop, he said, down
$102,250 – or 8% – to an average price of $1.156m in July.
‘‘Despite seeing the biggest drop, the Auckland region was the only remaining spot around the country with an average asking price of over $1m in July.’’
Wellington had the secondlargest drop in dollar terms, with a fall of $82,200 in the average price to $910,950. This was also a drop of 8%.
‘‘The capital narrowly avoided entering the $1m bracket, seeing an all-time high average asking price of $993,150 in March before it began its descent,’’ Lloyd said.
Another standout region was the Bay of Plenty, which experienced an average asking price drop of 6%. ‘‘After seeing its average asking price creep into the $1m bracket for the first time in February, the region saw a price drop of $56,350 to $945,200 in July.’’
Gisborne prices were down 9%, which in dollar terms was a $59,550 fall in average asking price.
But Lloyd said one region was flouting the trend.
‘‘Interestingly, Otago appears to be doing its own thing, seeing prices dip by just $1450 from the region’s all-time high in July.’’
Nationally, Lloyd said it was a ‘‘different market’’ than in 2020 and 2021.
‘‘We’re no longer seeing those relentless price increases and record-breaking asking prices month after month.
‘‘If you’re looking to get a foot on the ladder, this is a great time to do it, with home ownership feeling more attainable than it has in a long time for many Kiwis.’’