PHOTO: NZ house asking prices are still way off their peak. FILE
New Zealand Property Prices Take a Step Back Two Years
National Average Asking Price Retreats to August 2021 Levels
The latest Trade Me Property Price Index reveals a retreat in New Zealand’s national average asking price, bringing property prices back to levels last seen in August 2021.
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House prices are $130,400 less than the March 2022 peak
According to Gavin Lloyd, Trade Me Property Sales Director, house prices have declined by $130,400 since reaching their peak in March 2022. As of June, the national average asking price stands at $841,050, marking a 9 per cent decrease compared to the previous year. Notably, certain regions experienced even more significant price retreats than the national average.
Regional Variations in Property Prices
In the Auckland region, the average asking price in June mirrored that of March 2021, settling at $1,054,750. Meanwhile, Wellington’s property prices have returned to levels first observed in February 2021, with an average asking price of $813,200. Canterbury also saw a cooling of prices to $685,750, a figure last witnessed in December 2021.
Opportunities for Buyers Amid Cooling Market
Mr. Lloyd noted that although prices are still on a downward trend, the rate of decline has slowed, suggesting that it might be an opportune time to buy for those with the necessary deposit.
Wellington’s Property Market Experiences Significant Decline
Wellington’s property market, which was once among the most heated in the country, has also experienced a decline. The average asking price in Wellington has dropped from $936,300 in June 2022 to $813,200, representing a substantial 13 per cent decrease. Listings in Wellington have been gradually declining in average price since June of the previous year, decreasing by $123,100 over the course of 12 months.
Market Behavior During Winter and Election Year
The decline in supply and demand during the winter season is typical, with June experiencing a 6 per cent decrease in listings compared to the same month last year. This cooling trend is also associated with an election year, as sellers often wait for certainty about the market’s future before making decisions.
Christchurch’s Property Market Shows Resilience
While overall nationwide demand dropped by 4 per cent compared to June of the previous year, certain property types in Christchurch are bucking the trend. Larger homes with five or more bedrooms in Ōtautahi saw an impressive 8 per cent year-on-year increase in average asking price, reaching $1,219,800. Additionally, Christchurch’s apartment market is thriving, with a 9 per cent increase in demand compared to the previous month.
Popular Property Types in Urban Centers
In conclusion, while property prices are generally showing a retreat across New Zealand, the market is experiencing variations in different regions and property types. As winter sets in, a typical slow season, buyers and sellers alike are carefully monitoring the situation, anticipating further adjustments in prices.
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