Prices drop below $1 million
For the first time in nearly four years, Auckland’s average property asking price has dropped below the $1 million mark.
According to new Trade Me Property data, the average asking price in Auckland fell to $986,750 in August 2024, down 1.3% from July and marking the fifth consecutive month of price declines.
“It will be interesting to see if prices recover in spring, or if this reflects a more fundamental weakness in the market,” said Trade Me Property customer director Gavin Lloyd (pictured above).
Auckland couple benefits from price drop
First-time home buyers Sam and Pam Gaviola recently purchased a four-bedroom home in Henderson Heights for $900,000, well below the $1 million mark.
After attending more than 50 open homes, they managed to negotiate the price down from $1.1m due to moisture issues in the property’s cladding.
“While it took a long time to find the right property, it helped us understand our price point and what we were willing to pay,” Pam said.
Prices down nationally by 0.8%
Nationally, the average asking price for August 2024 dropped by 0.8% month-on-month, settling at $818,250 – a 2.3% decline compared to the previous year, Trade Me Property reported.
“If the trend continues, we could see the average price dip below $800,000,” Lloyd said, noting that consecutive declines over the past five months suggest now could be an opportune time for buyers.
“With both prices and interest rates dropping, now might be the right time to act,” he said.
Southern regions outperform northern markets
Trade Me Property data showed that four South Island regions recorded year-on-year price increases, with Otago (6.3%), Southland (5.5%), Marlborough (2.8%), and the West Coast (1.9%) seeing gains.
In contrast, only one North Island region, Gisborne, showed positive movement with a 9.9% increase.
“Gisborne's price recovery has been remarkable, going from a 9.5% decline in February to nearly a 10% rise by August,” Lloyd said.
Bigger properties losing value
The average price of homes with five or more bedrooms fell by 3.4% in August, down to $1,396,250.
Larger properties in Wellington and Auckland saw significant drops of 8.7% and 2.5% respectively, while Christchurch remained stable with a slight 0.2% dip.
“The average apartment in Wellington has lost $150,000 in value since April,” Lloyd said, as one-two bedroom properties in the capital fell by 9.7%, hitting an average price of $651,800.
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