The average price drop on Trade Me property hits $41,900

PHOTO: Trade Me property

According to STUFF the average price drop on Trade Me property ads after they were listed hit $41,900 in September, with 9% of properties reducing their prices once they hit the market, Trade Me property sales director Gavin Lloyd says.

Realestate.co.nz recorded a higher rate of price drops on listings, with 36% of ads on the website having had their prices reduced.

While this was high historically, it was down from June, when roughly half of properties had their asking prices reduced.

Realestate.co.nz spokeswoman Vanessa Williams said the rate of price cuts would suggest sellers and buyers were misaligned on price expectations.

“However, the last three months of listings dropping prices are now on a downward trend.

“This suggests the expectations of both buyers and sellers are getting closer, but about a third are still misaligned.”

Trade Me also recorded a glut of properties on the market in September compared to the same month last year, with the number listed jumping 67%, resulting in more properties being for sale than in any other September on record.

“With more supply, buyers have more power and sellers are having to adjust their price expectations,” Lloyd said.