The average asking price of residential properties listed for sale on Trade Me Property in the three months to February was $550,600, up 1.6% on the three months to January and up 9% on the same period a year ago.
In Auckland the average asking price reached a record high of $817,150 in the three months to February, up 2% on the three months to January and up 15.1% on a year earlier.
There was also a big jump in the average asking price in Wellington, which rose to $468,300 in the three months to February from $456,650 in the three months to January, putting it 5.4% up on the three months to February 2015.
In Christchurch there was a modest rise in the average asking price to $467,300 in the three months to February from $466,550 in the three months to January, to be up 5.2% compared to a year earlier.
However, prices were not rising for all types of properties.
Although average asking prices for stand alone houses have been rising, asking prices of apartments and townhouses have been falling in Auckland and Christchurch.
In Auckland, the average asking price of apartments declined for the third month in a row to $513,650, down $88,200 (14.7%) since November last year.
The average asking price of Auckland townhouses also declined for the third month in a row, from $759,050 in the three months to November to $751,150 in the three months to February.
In Christchurch the average asking price of apartments has dropped dramatically, falling from $410,000 in the three months to December to $345,000 in the three months to February which was down 24.9% compared to a year earlier.
Trade Me's Head of Property Nigel Jeffries said apartments and home units were in vogue last year but that interest was waning in favour of houses.
"The average asking price for apartments slipped below $500,000 in February after an intense period of growth," he said.
"We've seen asking prices skyrocket from $437,550 in February 2015 to a peak of $560,200 in November 2015, but it has since slipped back by $70,000.
"The Auckland housing apartment market is heavily influencing this weakness, accounting for close to 60% of the national apartment market," he said.
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13 Comments
Together with auction clearance rates, this makes for depressing reading.
It seems Aucklanders are accepting these prices. I have waited 8 years for various reasons to buy, and have been holding out the last year to see if sanity will return.
Doesn't look like it. So the bank will loan me a mil, might as well spend it then.
Historically winter is the best time to buy. I know last winter was crazy with overseas money coming in but with the economically climate not looking great for NZ it might be worth holding off for 3 more months. Remember everyone wants to buy when it's sunny. Including you, it seems.
I recall recommending buying stand-alone house several times in previous comments.
One thing I have noticed with TradeMe asking prices is that many are asking for more than 35% over CV. Many small houses, units and places with larger sections have asking prices exceeding 50% of CV. I will see if I can do some more spot checking on this phenomenon.
A quick analysis of 18 fairly normal houses, not apartments or ones suspected to be leaky, in the one to two million range in Auckland, for sale with a price on TradeMe, reveals an asking price of 38.33% above CV. Quite high as auctions average around 35% above CV. I imagine vendors would sell for less than the asking price if presented a good offer. Situation looks normal.
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