Trade Me data shows average New Zealand house price has dropped below $900,000

PHOTO: Trade Me Property

The average asking price for a house in New Zealand is now less than $900,000, with Bay of Plenty seeing a year-on-year decrease for the first time, Trade Me data shows.

It comes after the Real Estate Institute of New Zealand (REINZ) earlier this week reported a 12.2 percent house price plunge in 2022.

Trade Me’s December property price index, released on Thursday, confirmed average prices in New Zealand had dropped 6 percent on the year prior to $897,900 – a nearly $60,000 decline. The number of properties on the market, however, was up 29 percent.

“December marked the second year-on-year drop we’ve seen in a row, with the average asking price falling by 4 percent in November,” Trade Me Property sales director Gavin Lloyd said.

“Prior to that, the last price drop we saw was in March 2018, when the national average asking price fell by 1 percent when compared with the 12 months prior.”

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Wellington saw the largest drop in asking prices, down 9 percent year-on-year to $875,550 in December.

“As we come down from the sugar rush we experienced during the pandemic, 2023 is going to be a great time for those that have been wanting to enter the property market but have felt priced out over the last couple of years to look around and consider their options,” Lloyd said.

Bay of Plenty saw property prices decrease year-on-year for the first time in December, Trade Me reported. The region hit $936,850, down nearly $65,000 from its record highs in February.

There were regions that bucked the trend and recorded year-on-year growth, however. Taranaki and Waikato were up 9 and 3 percent respectively while prices rose in every South Island region – ranging from 6.5 percent growth on the West Coast to 0.2 percent increases in Southland.

Earlier this week, REINZ chief executive Jen Baird it was a good time to be a buyer if people can get finance over the line.