NZ’s average house asking price reaches high of $956K

Source: 1News

The national average asking price for a property jumped by a quarter year-on-year in December to reach a new high of $956,150, according to the latest Trade Me Property Price Index.

Houses in Mt Albert, Auckland (file picture).

Last month’s national average asking price increase was the largest on record, Trade Me Property sales director Gavin Lloyd said in a media release.

“After entering the $900,000 bracket for the first time in November, the national average asking price continued to break records and show unprecedented growth last month. December marked the third month in a row where we saw property prices increase by more than 20 per cent year-on-year."

The average asking price last month increased by “at least 15 per cent year-on-year in December” in every region except Southland, he said.

Nationwide, the number of houses up for sale also increased by six per cent year-on-year last month - the first time supply has increased since April 2021.

However, nationwide demand saw a four per cent drop in December compared to the same month year-on-year, Lloyd said.

In more positive news for first-home buyers, Lloyd said prices may slow in the new year if supply increases continue, he said.

“Looking at our December data it is certainly hard to imagine prices cooling off, especially following the relentless increases we saw throughout the past couple of years.

“However, going into 2022, we will be watching listing numbers closely to see whether that gap between supply and demand narrows and some pressure is taken off the market as a result.”

The largest price increases were in the middle of the North Island, with the average asking price in Hawke's Bay up 32 per cent year-on-year and the average asking price in the Manawatū/Whanganui up 30 per cent.

It was offset by a “massive surge in supply” last month when compared with the same time last year, with listings up 52 per cent in Manawatū/Whanganui and 51 per cent in the Hawke’s Bay.

Lloyd attributed the “flurry of activity” in the regions to the Covid-19 lockdowns slowing the market in the middle of the year.

“It looks like Kiwis looking to sell held off in the middle of the year, and then when things started looking stable again, we saw big numbers of listings come on site at the end of the year.”

Meanwhile, the average asking price for homes in the Wellington region rose to a new high of $966,300 in December - an increase of 27 per cent year-on-year.

The district spent its third month ever in the $1 million bracket, with an average asking price of $1,059,850.

Meanwhile, the average asking price in the Porirua district reached $1 million for the first time at $1,015,250.

“This marked a 27 per cent year-on-year increase and made it the third most expensive district in the Wellington region," Lloyd said.

Supply in the capital was up 42 per cent year-on-year, while demand was down 9 per cent.

“This marked the second month in a row that the region saw a significant supply increase. If we see this trend continue in the coming months we may well see prices slow in the Wellington region.”

The average Auckland asking price reached a record $1,253,600 in December, climbing 22 per cent year-on-year.

Auckland City’s average asking price saw an all-time high of $1,378,250, making it the third most expensive district in the region, Lloyd said.

Supply in the Auckland region was up 10 per cent year-on-year in December, while demand was down 10 per cent.

Lloyd said nationwide, houses of all sizes saw their highest ever average asking price last month.

“The largest year-on-year increase was seen for small houses, with the average asking price for 1-2 bedroom properties increasing by 29 per cent year-on-year.”

The national average asking price for urban properties such as townhouses, apartments and units also reached a record high in December, at $771,950.

Townhouses saw the biggest increase, with the average asking price up 28 per cent on the same month last year, and reaching an all-time high of $902,200.