Housing market expected to cool

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PHOTO: NZ property market

The latest Trade Me Property Price Index shows the national average asking price for a home has hit a record $805,000.

Trade Me property sales director Gavin Lloyd said the national average asking price showed an annual increase of 16 percent in the year to March, with almost every region experiencing price jumps.

Wellington experienced the highest year-on-year growth in price, with the average asking price increasing by 20 percent compared with the same month last year.

Auckland prices went up 10 percent on the same time last year.

Lloyd told Morning Report there was a big demand in March up by 26 percent and but supply was down 9 percent.

“We saw growth through every region except for Nelson, the West Coast, Otago and Northland. New records were set in every region. Auckland broke through the million mark.”

He said winter would cool down the housing market.

“We are seeing some signs that April could be a little different … and the market cooling off. The LVRs coming in from 1 May will have an impact on sales in the month of April. And then as we move into those cooler months, we expect to see the heat of the market come out.”