Prices keep rising as region bucks house trend

Wellington region house prices continue to climb as other parts of the country cool, pushing the cost of the average home up by $48,550 in the past year.

The average asking price of a home in the region is now $528,200 – 10 per cent higher than it was a year ago. The average price in Upper Hutt rose 16 per cent to $455,600.

The figures, from the Trade Me property price index, also show a 5 per cent increase in demand, accompanied by an 8 per cent decrease in properties hitting the region’s market during the busy spring period.

The combination is putting home ownership further out of the reach of many first-home buyers, and contrasts with a slowdown in price increases nationally, led by the stalling Auckland market.

Trade Me property head Nigel Jeffries believed the current Wellington increases were not sustainable, and would probably drop to about 5 per cent over the next year.

Wellington city first-home buyer Andy Stantiall said he and his partner had spent a frustrating 18 months searching for a home before finally buying a semi-detached in Crofton Downs two months ago.

It had been frustrating to watch prices move further and further beyond what he could afford, he said.

‘‘I have a few friends who have been waiting to see if it plateaus, so this news is not great for them.

‘‘Open homes have been few and far between. There hasn’t been much on the market in our price range. We were wanting to keep under $500,000.

‘‘We considered building, but there’s a lack of available land in Wellington.’’

The 29-year-old said he had seen several friends move to Wairarapa rather than compete in the capital’s market.

Jeffries said the continuing rise in Wellington prices was partly because homes were still affordable in comparison with the average wage, which was not the case in Auckland.

The average wage in Wellington was $69,876 compared with Auckland’s $72,338, while average house prices were $365,000 higher in Auckland.

‘‘The Wellington property market has stood strong over the last five years, climbing over 31 per cent and earning homeowners a hefty $127,000 since September 2012,’’ he said.

Nationwide, the average asking price for a home was up 1.1 per cent to $607,400 in the past year.

In other big centres, Christchurch was down 1.1 per cent on last year, while Auckland was up 2.5 per cent.

‘‘Sellers in the super-city have taken their foot off the gas, with the number of new listings down 20 per cent on last year, leaving buyers with slim pickings compared to the glut of properties available over recent times,’’ Jefferies said.

‘‘We are seeing unusually low stock for this time of year. We think homeowners are to some extent waiting for an election outcome before they put their property on the market.’’

He expected listings to pick up once a government had been formed, but there might be a sting in the tail for Wellington if a Labour government cames to power.

Jeffries believed that could lead to an increase in the size of government, adding more demand to the local mix.

REGIONAL PRICE RISES

Carterton: up 3 per cent to $392,500 Kapiti Coast: up 20 per cent to $517,900 Lower Hutt: up 19 per cent to $506,500 Masterton: up 23 per cent to $341,200 Porirua: up 23 per cent to $549,300 SouthWairarapa: up 2 per cent to $422,650 Upper Hutt: up 16 per cent to $455,600 Wellington city: up 7 per cent to $645,800