Housing market starts to heat up

The national property market is warming up with the weather, and the average asking price has risen 3.8 per cent on last year to $663,250.

More stock hit the market as is usual in November, but asking prices still charged ahead, Trade Me property figures show. Every region recorded year-on-year rises with record highs in the Bay of Plenty, Canterbury, Hawke’s Bay, Nelson/Tasman, Otago, Southland, Waikato and Wellington.

Listings increased by 5 per cent on October and 4 per cent more than November last year, and views were also high.

Trade Me head of property Nigel Jeffries said that although interest rates remained low and the Reserve Bank had eased restrictions around loan-to-value ratios (LVRs), he did not expect them to have a significant impact on the property market.

‘‘However, this will open the door for more first-home buyers to enter the market which is great news for those wanting to get a foot on the property ladder.’’

Around the regions, the capital was clearly still yet to see the slowdown plaguing Auckland.

Wellington City, Lower Hutt and Upper Hutt all reached new records in November, as supply struggled to meet demand. The number of properties for sale in Wellington was down 7 per cent on last November.

‘‘The average asking price in Wellington City hit $729,260, up 9.8 per cent on last year, while Lower Hutt and Upper Hutt came in at $568,550 (up 6.4 per cent) and $552,950 (up 8.9 per cent) respectively,’’ Jeffries said.

In Auckland, vendors’ expectations were flat, with asking prices up just 0.5 per cent on last year to $943,400.

‘‘Asking prices were a mixed bag in November with Manukau City, North Shore City, Papakura, and Rodney all dipping on last November, while Auckland City, Franklin, and Waiheke Island all increased,’’ Jeffries said.

Stock on the Auckland market increased 9 per cent, but interest was still high, with views on the website up 17 per cent on the previous year.

Small one to two bedroom houses were popular in the City of Sails, with prices climbing nearly 11 per cent to $741,700 in November.

Medium sized houses were flat, and large houses (with five bedrooms or more) were down 5.6 per cent to $1,354,550.

Like Wellington, Waikato was also not losing any steam. Prices surged 6.6 per cent year on year to $574,000, continuing a trend since the spring of 2015.

Jeffries said Waikato was benefiting from the ‘‘halo effect’’ of its proximity to Auckland. The number of views was up 15 per cent.