NZ's average asking price for home tops $933K

Source: 1News

House prices have hit a record high, with the national average asking price now at $933,135.

Data from realestate.co.nz also shows 10 of New Zealand's 19 regions also hit 14-year record-high asking prices last month.

Central Otago/Lakes District saw the largest average asking price increase in October - up 41.9 per cent - when compared to the same period last year. The average price is now $1,423,038 - an increase of about $200,000 since September.

But realeastate.co.nz said a handful of lakeside properties hitting the market may elevate that data.

Meanwhile, other regions showing record high average asking prices include the Central North Island (up 37.2 per cent to $794,975), Wairarapa (up 34.0 per cent to $810,790), Hawke’s Bay (up 28.9 per cent to $843,306), Waikato (up 27.1 per cent to $865,592), Manawatu/Wanganui (up 26.5 per cent to $659,622), Wellington (up 24.0 per cent to $961,799), Bay of Plenty (up 21.4 per cent to $945,971), Auckland (up 21.3 per cent to $1,230,163), and Gisborne (up 11.0 per cent to $661,663).

And while no regions went backwards year-on-year in October, the West Coast is still the most affordable region to purchase a property.
A average price of a home in the area is $379,520 – up 20.0 per cent - when compared to the same period last year.

Realeastate.co.nz chief executive Sarah Wood on Monday told Breakfast there's a range of reasons for the high prices, which have been tracking up for a while, with one being the huge amount of demand from Kiwis wanting to purchase property.

October was realestate.co.nz's second largest month in 2021, with 1.35 million users visiting the site.

"I think it's a range of things, I think it depends what part of New Zealand you're living in, but also there's a huge amount of demand from Kiwis who are purchasing property so that is also creating a mix in the supply and demand," Wood said.

She added that supply continues to be a challenge, with a number of regions struggling.

Data from Infometrics and modelling from Statistics New Zealand suggests New Zealand may not get on top of the housing shortfall until 2026.

"It will take four to five years, based on some of the research reports out now, in terms of building. It just takes time," Wood said.

"While there's record consents going through at the moment, that process to actually put the services in, secure the land, get the resource consent and then actually build homes just takes time."

However, she said more stock was coming on all the time and heading into summer that's expected to continue.

"There definitely is new stock coming through all the time and Wellington in particular is seeing a big surge in properties coming to market."

Wood encouraged buyers to do their research and really understand the market they're buying into, especially for those who may be selling a property then buying in the same market.

As for first home buyers, Wood said they were "often very very creative".

She said an example was two friends who bought an apartment together, and another example of a group of four 25 and 26-year-olds who bought a four-bedroom home together.

"First home buyers are always really creative in how they solve that problem, whether it's those kinds of solutions or whether it's broadening their search or changing what they're looking for."