House prices around the country have reached all-time highs as 2020 comes to a close, according to the latest Trade Me Property Price Index.
The index has found the national average asking price reached an all-time high in November of $762,000. This represents a 12.5 per cent increase compared to the same time last year.
The Auckland region also had a record-breaking month, with the average asking price reaching $1,022,300. That’s up 10.4 per cent compared to November last year. Demand in the region increased 25 per cent, and the number of properties listed on Trade Me was up 10 per cent.
In the Wellington region, the average asking price reached $761,300 in November - a 12 per cent increase from November last year. Demand in the region was up 20 per cent, but the number of properties for sale was down 10 per cent year-on-year.
Spokesperson Logan Mudge said the skyrocketing house prices was because of an imbalance between supply and demand.
“Similar to what we have seen in previous months, buyer demand was sky-high in November and the number of properties for sale didn’t keep up.
“When compared with November 2019, national demand was up by 21 per cent, while supply was down by five per cent.”
He said the November figure was the third record-breaking month in a row.
House prices continued to stay strong despite a predicted slow-down earlier this year after the Covid-19 lockdown, Mudge said.
“Earlier in the year, it was anyone’s guess where the market was heading, but November proved itself to be yet another month of house price inflation.”
He said it was unlikely house prices would cool off any time soon.
“Typically summer is when we see the market really take off and we’re not seeing signs this year will be any different.”
ANZ will now require a 40 per cent deposit from investors borrowing money to buy residential property. (Source: Other)
The Trade Me Property Price Index measures trends in expected selling prices for residential property listings added to its website by real estate agents and private sellers. It measures data from the past three months.
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