Average asking price for homes reaches all-time high; lack of supply to blame — Trade Me

Source: 1News

The lack of supply means New Zealand's overheating housing market is showing no sign of slowing, with national asking prices reaching all-time highs, the latest Trade Me Property data shows.

It’s the fifth month in a row average asking prices for homes nationwide reached records. It reached $769,000 last month, up 15 per cent from the year before.

“We haven’t seen a record-breaking streak like this before, with the property market showing no sign of slowing down,” Trade Me Property sales director Gavin Lloyd said.

He said the biggest increases to the year before were seen in Manawatu/Wanganui (up 21 per cent to $500,350), Gisborne (up 25 per cent to $512,150) and Wellington (up 14 per cent to $773,900).

New records were set in every region except Auckland and Otago.

In the Auckland region, asking prices went up 9.9 per cent last month compared to the year before. Asking prices have now reached nearly $1,007,000.

Lloyd put it down to an increase in housing supply.

“When compared with January last year, we saw a five per cent increase in properties listed for sale in the Auckland region last month.”

Looking ahead, the Auckland market may slow further because of the recent Level 3 lockdown, Lloyd said.

Auckland was also the only region in the country that saw an increase in supply in January compared to the year before.

Other regions saw a drop of at least four per cent in properties being listed compared to the year before.

“As we have seen consistently over the past few months, demand outstripped supply in January, which put pressure on the market and pushed prices up.”

The Trade Me property data was produced from properties listed on its site in the three months leading up to January.