Average asking prices still falling on Trade Me Property

Property / news

July a tough month on Trade Me Property with new listings, site views and average asking prices all heading south

16th Aug 23, 9:51am by Greg Ninness

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

by Von Metternich | 16th Aug 23, 10:02am 1692136934

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.

by Hawkes Bay | 16th Aug 23, 10:08am 1692137318

The MSM will need a Warehouse Full Of Spruikers to Deal with this Mess.

by Mofo Fomo | 16th Aug 23, 10:34am 1692138896

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…

by ChrisOfNoFame | 16th Aug 23, 1:38pm 1692149888

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.

by balance | 16th Aug 23, 10:33am 1692138835

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.

by Mofo Fomo | 16th Aug 23, 10:36am 1692139015

What percentage of foriegn investers bùy houses?

by balance | 16th Aug 23, 10:45am 1692139527

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.

by 26@Main | 16th Aug 23, 11:10am 1692141006

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…

by balance | 16th Aug 23, 11:14am 1692141288

You keep believing that.

by 26@Main | 16th Aug 23, 12:38pm 1692146305

Just reporting what I heard ....

by Black and White | 16th Aug 23, 9:10pm 1692177001

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.

by E46 | 16th Aug 23, 11:14am 1692141285

I feel like Switzerland is quite well run as well.

by Yvil | 16th Aug 23, 11:18am 1692141533

Who is Luxton?

by mfd | 16th Aug 23, 11:21am 1692141693

Jo Luxton is a Labour MP and seems to be taking a lot of flak for Chris Luxon in this thread

by Yvil | 16th Aug 23, 1:18pm 1692148711

Thanks for clarifying mfd.

by balance | 16th Aug 23, 11:52am 1692143573

Topher Luxton, LOTO

by Black and White | 16th Aug 23, 9:07pm 1692176847

There is only one Chris Luxon we are all talking about.

John Keys Mate

by Mofo Fomo | 16th Aug 23, 12:19pm 1692145181

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"!

by Baywatch | 16th Aug 23, 4:16pm 1692159373

Mofo telling other to get real...word!

by Jesse1 | 16th Aug 23, 11:30am 1692142236

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.

by Advisor | 16th Aug 23, 12:03pm 1692144193

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.

by Blackbeard | 16th Aug 23, 12:06pm 1692144406

...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?

by ikimpaul | 16th Aug 23, 12:14pm 1692144843

Did you know about Michael Woods Conflict- before this year

Do you know about Luxons.

There is your answer.

by mfd | 16th Aug 23, 1:00pm 1692147646

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.

by Advisor | 16th Aug 23, 2:11pm 1692151867

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.

by Roger the dodger | 16th Aug 23, 7:12pm 1692169934

Once! You are having a laugh child

by Mofo Fomo | 16th Aug 23, 10:39am 1692139149

How many listings were removed unsold. Plenty in my area!!!

by Jesse1 | 16th Aug 23, 11:23am 1692141823

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.

by ChrisOfNoFame | 16th Aug 23, 1:41pm 1692150089

Lots of empty sections, sections with foundations but no activity and/or sections being used as building supplies storage in my area in Auckland.

by mfd | 16th Aug 23, 1:46pm 1692150362

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.

by Black and White | 16th Aug 23, 11:04am 1692140696

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.

by Yvil | 16th Aug 23, 11:21am 1692141680

"Got a fare way to go yet". Is that a one-way fare?

by Mofo Fomo | 16th Aug 23, 12:29pm 1692145752

Yvil is perfect!

by Yvil | 16th Aug 23, 1:17pm 1692148647

Thanks Mofo 😊

by Retired-Poppy | 16th Aug 23, 1:47pm 1692150423

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.

by Hawkes Bay | 16th Aug 23, 1:49pm 1692150598

There is actually a whole range of words that Rhyme with Tick that Describe Yvil.

by Whatwillhappen | 16th Aug 23, 11:24am 1692141863

Unintentionally mind!

by mfd | 16th Aug 23, 11:39am 1692142751

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.

by 1689 Baptist | 16th Aug 23, 11:32am 1692142344

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.

by J.C. | 16th Aug 23, 11:50am 1692143419

The new narrative around the water cooler is that dairy prices are bringing down the market and that nobody saw it coming.

by IT GUY | 16th Aug 23, 11:56am 1692143789

Not much over 2mil is selling

by ikimpaul | 16th Aug 23, 12:12pm 1692144725

...but...but...but where are all the green shoots.

by Kate | 17th Aug 23, 12:31am 1692189112

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.

by Snow | 17th Aug 23, 6:56am 1692212196

"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?

by starrider | 18th Aug 23, 9:11am 1692306661

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.

by starrider | 18th Aug 23, 9:10am 1692306611

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.