High prices, low stock in regions

Trade Me is reporting a strong start to 2020 for the property market, with seven provinces hitting record average asking prices in January on the listings website.

‘‘While typically Auckland and Wellington hog the headlines when it comes to property prices, the provinces have been increasing considerably, with some even experiencing strong double-digit price growth,’’ Trade Me Property head Nigel Jeffries said.

‘‘The average asking price in Bay of Plenty, Gisborne, Manawatu¯ /Whanganui, Marlborough, Nelson/Tasman, West Coast, and Southland all hit new highs in January. Out of the recordbreaking regions, Southland, West Coast and Manawatu¯ /Whanganui were the standouts with a year-onyear increase of 15.4 per cent, 14.4 per cent and 18.6 per cent, respectively.’’

Almost every region had asking prices that were higher in January this year than the same time last year. On a national basis, average asking prices were up 3 per cent, year on year, to $666,900.

Jeffries said it was a great time to be selling a house.

‘‘In January, we saw a 6 per cent jump in the number of views on properties for sale compared to last January, while stock was down 22 per cent on the year prior.

‘‘With record high prices in a lot of regions, demand for properties on the rise and low stock, it’s more a seller’s market.’’

In Wellington, the average asking price of $677,850 was 10 per cent higher than that of January 2019. Jeffries said demand in the region was up 11 per cent and supply fell 20 per cent.

‘‘Property prices in the Wellington region took off in mid-2016, later than the Auckland market, and have shown no real signs of slowing since.’’

Jeffries said there were a lot of buyers looking for Auckland properties, too. The average number of views on listings for properties in the city was up 31 per cent from December to January.

‘‘The number of properties on the market in Auckland was down 3 per cent on December – and with demand on the rise, this could be a perfect storm. We expect the [Auckland] market to bounce back in 2020, with house prices rising once more.’’

Christchurch’s average asking price was up 1.4 per cent compared with January 2019, to $496,150. The average asking price of apartments in the city was up 7.3 per cent to $492,900.

‘‘With record high prices in a lot of regions . . . it’s more a seller’s market.’’

Nigel Jeffries

Head of Trade Me Property