It was all quiet on the Trade Me Property front in July, with average asking prices, the supply of new properties and demand from buyers all trending down.
The average asking price on the website was $833,850 in July. That's down 8.4% (-$76,600) compared to July last year.
The biggest annual decline was in Wellington (-11.0%), followed by Auckland -10.6%, Hawke's Bay -9.6% and Waikato -8.3%.
However, one region went against the trend with the average asking price for the West Coast up 0.8% in July.
"Property prices have been dropping since November 2022 and in April we saw the biggest year-on-year decline in the national average asking price on record at -10.9% or -$106,000, however since then this rate of decline has eased," Trade Me Property Sales Director Gavin Lloyd said.
Trade Me's figures also showed that supply and demand for properties were both down in July, with 10% fewer listings and 7% fewer views compared to July last year.
"There are definitely fewer properties on the market compared to what we saw at the peak," Lloyd said.
"However, stock is not at record lows and this is typical of what we see in the lead up an election as many sellers wait and see which way the votes go."
"We'd expect more properties to be put on the market after election day and I think we might start seeing property prices flatten before 2024 rolls around," Lloyd said.
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46 Comments
The point worth noting here is Wellington has the highest average salary and in theory should be the one place where people can on average afford the most. IMO there needs to be a breakdown of the relative number of successful sales per capita, since it is likely Wellington has faster price fall because the market is more functional in that region.
The market is totally frozen otherwise, every upgrade, new job relocation and retirement is delayed depending on the FHB to buy at the bottom of the chain.
The MSM will need a Warehouse Full Of Spruikers to Deal with this Mess.
Nah! "The Comb" and Jen Baird ( REINZ chief spruiker)can "con"vince the pilgrims/ masses of dummies easily on thier own.
https://www.newstalkzb.co.nz/on-air/heather-du-plessis-allan-drive/audi…
I have some rellies in Wlg. I showed them the effects of Auckland's 2016 Unitary Plan on house prices and explained Wlg's plans and the implications of the MDRS and NPS-UD. They got it. They're continuing to save or staying put, and keeping their powder dry and term deposits growing. Wlg prices have quite a way to go yet.
Luxton arguing on Radio NZ this morning that is the worst time to be a FHB. Says that Government has let house prices rise too much making it harder for FHB. Isn't he looking to allow Foreign Buyers back in. Feels to me like a lot of people will vote according to how it will affect their house price. Keep the non productive economy going.
What percentage of foriegn investers bùy houses?
There is substantial investment into property in New Zealand from overseas interests over the past 15 years. It's not hard to get around the foreign buyer ban, but at least it shows we want to put New Zealanders first. Taking the foreign buyer ban away says the NZ housing market is for investment and profit internationally.
According to Newshub last night, in the March 2018 quarter (before the ban was brought in) about 3.3% or 1300 houses were sold to foreigners, in the March quarter this year about 0.4% or 121 houses were sold to foreigners.
https://www.newshub.co.nz/home/politics/2023/08/national-tightlipped-on…
Me John Key and me to Chris Luxon.
Chris Luxon will do the same as key sell the country out to who ever and wind-up the Ponzi again.
Not a great outlook for young Kiwis at all.
When he was in Singapore recently I wonder if he asked how did they get 90% of the Singapore people into their own homes?
All these so called leaders in Wellington need to spend some time in Singapore and learn how to run a city and a country.
Singapore are the world leaders on how a country should be run in my view.
I feel like Switzerland is quite well run as well.
Who is Luxton?
Jo Luxton is a Labour MP and seems to be taking a lot of flak for Chris Luxon in this thread
Thanks for clarifying mfd.
Topher Luxton, LOTO
There is only one Chris Luxon we are all talking about.
John Keys Mate
Get real. I feel safer, healthier, wealthier and racially calm under the last national Government than I do under this dogs breakfast, waste full, useless labour mob.
I think most do .. except the '' tit suckers"!
Mofo telling other to get real...word!
Yes it seems rather hypocritical given National's plans:
1. Reinstate interest deductibility to investors
2. Reduce the bright line test
3. Allow foreign property buyers
4. Encourage lower density housing
5. Tell the reserve bank not to consider sustainable house prices.
6. Likely increase immigration more to ensure an extreme housing deficit.
7. Allow people to use Kiwisaver for bonds which makes it easier to landlords to raise rents.
I just wonder how much more could these incompetent bunch hammer the productive economy before the s**t hits the fan (another global financial reckoning I suppose).
National's plan to sell NZ houses, state-owned enterprises and transport infrastructure to foreigners means more money will flow out of NZ each year leaving less behind for domestic activity.
Luxon is about to dropkick the massive trashcan full of stinky poo and we're clearly running out of road.
...and National dragged Michael Wood through the hot coals for conflict of Interest on 12k of shares.
Someone remind me how many houses Chris Luxon has?
Did you know about Michael Woods Conflict- before this year
Do you know about Luxons.
There is your answer.
Would you rather have an MP in power with a multi-million dollar conflict of interest you know about, or one with a few thousand dollar conflict you don't?
Of course Wood was rightly punished for not following the rules, but Luxon's obvious conflict makes him unelectable for me. I only own one property and have no desire for us to fire up the capital gains engine again.
It's the equivalent of Woods getting fired for silently farting in an elevator once but letting Luxon get away for taking his morning dumps on the lunch table because he discloses it.
Once! You are having a laugh child
.
How many listings were removed unsold. Plenty in my area!!!
Same in mine. It seems that many are just waiting to relist during the spring, probably advised by the agents. We'll know for sure soon enough.
Lots of empty sections, sections with foundations but no activity and/or sections being used as building supplies storage in my area in Auckland.
Still seems pretty active in Christchurch from my bike to work observations. Quite a few single houses turning into blocks of 4 or 5, and a few bigger sections turning into 10-20 town houses, plus the big developments springing up a little further out. Seems like a lot of supply coming on. Bodes well for prices coming down in the future.
Fantastic long may it continue.
Got a fare way to go yet to look after our younger Kiwis
The red team did a fantastic job of undoing the housing Ponzi.
"Got a fare way to go yet". Is that a one-way fare?
Yvil is perfect!
Thanks Mofo 😊
Yvil crowned himself the interest.co.nz Moderator some time ago ✅✅✅✅
First came calling out others for name calling, then green ticks and now it's spelling and grammar.
Happy fulfilled people usually don't indulge in this sort of stuff.
There is actually a whole range of words that Rhyme with Tick that Describe Yvil.
Unintentionally mind!
I don't know, they have taken a number of useful steps and stuck to their guns despite prices falling. Admittedly, they were slow to get moving and the steps have been faltering but at least they have started to move in the right direction.
The Nats will be sprinting full tilt in the opposite direction.
No major shift in selling prices. Even a slight rise in the house price index last month. This tells me the discrepancy between asking and selling prices is closing. Not a bad thing.
The new narrative around the water cooler is that dairy prices are bringing down the market and that nobody saw it coming.
Not much over 2mil is selling
...but...but...but where are all the green shoots.
TradeMe Property needs to have an option that allows one to search for private-sale listings only. Like they have a new vs used one for their general goods marketplace.
Private listings are its only distinguishing factor from realestate.co.nz.
"We'd expect more properties to be put on the market after election day and I think we might start seeing property prices flatten before 2024 rolls around," Lloyd said.
So supply goes up and prices go up?
Generally, when there is an oversupply prices drop. The throbbing swell of spring listings is just around the corner, and the only buyers to be found are being stress-tested at pretty much 10%.
The median house price is heading to 4x household income + deposit. And lots of people have huge deposits.
The throbbing swell of spring listings is just around the corner. Time to sell is stagnant.
I think we are getting to the end of people listing and hoping to get last years prices. I think this spring and summer will be the season of "needing to sell quick" rather than "wanting to sell for massive cap gains".
It will be a significant shift. Keep an eye out for new listings having prices listed rather than the current Bull Sh!t "deadline sale" "negotiation" "tender". All designed to stoke FOMO.
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