"Prices are still going down, but the rate of this decline is easing," sales director says
Average asking prices listed on Trade Me Property have retreated to levels seen in August 2021.
The latest Trade Me Property Price Index showed that the national average asking price was $841,050 in June, which was $130,400 less than the record high of $971,450 in March 2022.
“In June, property prices were down 9% on the year prior. If we look closer at a regional level, some prices have retreated more than the national average,” said Gavin Lloyd (pictured above), Trade Me Property sales director.
In the Auckland region, the average asking price in June was $1,054,750, similar to levels seen in March 2021; while in Wellington, prices have eased to levels first seen in February 2021 at $813,200. In Canterbury, prices cooled to $685,750, a figure last posted in December 2021.
“Prices are still going down, but the rate of this decline is easing. These trends suggest that now is a good time to buy if you have the deposit behind you,” Lloyd said.
The property market that saw the biggest decline was Wellington, where the average asking price fell 13% from $936,300 in June 2022 to the current $813,200 – a level last seen in February 2021.
“Wellington has been one of the most heated property markets over the past few years, but this appears to be slowing down with a continuing trend of decline over the last six months,” Lloyd said.
“The capital certainly had some of the biggest price jumps during the peak of the market, so it makes sense it is now seeing a greater rate of decline compared to other New Zealand regions. This is the market correcting itself after the big swings we’ve seen in the region over the past few years.”
Trade Me’s figures also showed a cooling down in supply and demand in June.
“Although winter is typically a slower period, listings are down 6% compared to June last year,” Lloyd said. “This is also typical market behaviour when we are in an election year as sellers wait for certainty about what’s ahead.”
Wellington, in particular, had much fewer listings, down 29% compared with listings seen in June 2022.
Nationwide demand dropped 4% from June last year, with some buyers keeping an eye on the market as prices continue to ease.
Bucking the trend of falling average asking prices are the larger houses and apartments in Christchurch.
Houses with five or more bedrooms in the region posted an average sale price of $1,219,800, up nearly 8% year-on-year. Christchurch apartments were likewise in demand, up 9% on last month.
“We often see demand for a specific type of property driving demand and pricing in some markets, and apartments and larger homes in Christchurch are proving to still be very popular,” Lloyd said.
Across the board, townhouses, apartments, and units continue to be popular in urban centres, except units in Wellington, which were down 20% in asking price, at an average of $553,400, Trade Me Property reported.
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