Property prices and most other housing indicators are falling as autumn takes hold of the market.
According to Trade Me Property's Property Price Index, the average asking price for properties available for sale on the website in April was $855,150. That was down 0.8% compared to March, and down 2.6% from April last year.
The biggest decline was on the West Coast of the South Island where the average asking price in April fell 7.4% from March.
Around the main centres average asking prices declined in Auckland -1.0%, Wellington -1.4% and Canterbury -0.7%. Otago went against the trend and posted a gain of 0.6% compared to March. See the chart below for the full regional figures.
Other indicators were also on a downward slide.
The total number of listings on Trade Me Property at the end of April was down 4% from March, while use of the website by potential buyers declined by 13%.
Trade Me Property Customer Director Gavin Lloyd said buyers would still have plenty of properties to choose from.
"We had several thousand more properties listed onsite in April this year compared to April 2024," Lloyd said.
"That means buyers continue to have plenty of leverage, and to secure a sale, vendors are going to need to meet the market, particularly in regard to price expectations," he said.
Trade Me Property doesn't release the actual listings data.
16 Comments
Down down down in ponzi town. If Ireland was anything to go by, this still has years to unfold from the gambling that took place. If only it was like the sharemarket and we could just have true price discovery more less instantly and drop back to 2015 thereabouts.
The recovery is here !
Oh yeah....looking, where is it again?
....just around yet another corner.
And a tinsy winsy gully.
If Ireland is anything to go by we’re about half way through the down cycle
🥂
THE NZ PROPERTY PRICE CRASH STEEPENS and heads into its much deeper ,second leg.....2028 maybe the bottom!
Now worldwide news!! Yay for those who have waited to buy! -40 to -60% REAL price reduction coming in the next year or two!!
New Zealand's house price crash steepens - MacroBusiness
Cote yourselfinPONZIJUICE Dzores.......is wimpering in the overleveraged corner.
At what point do the banks say enough and request more capital (margin call)?
Yes it’s always been my opinion that at some point in time we could see a 50% drop in prices but didn’t know if it would occur in nominal or real terms (which depended upon central bank and government intervention - ie they may try to mask the crash but causing high inflation to keep nominal prices relatively flat - which has been their strategy following COVID).
I think it’s possible we see very little nominal price appreciation in housing in NZ in the coming years or even decade with inflation slowly eroding away nominal prices. Some parts of the country could be down approx 30-40% now in real terms. Some less than that.
The telling stats that point to declines are:
'use of the website by potential buyers declined by 13%'.
"We had several thousand more properties listed onsite in April this year compared to April 2024,"
No doubt there has to be a lower reset on selling price expectations so vendors don't waste their own time, as well as agents and buyers with above market expectations.
Those who were holding out for better prices are tired of waiting and have to suck up their expectations of silly high prices if they wish to have the cashflow to pursue their future endeavours.
Well, I do hope they don't drop too much. We are about to list LSB.
The Life Sentence Block is just like Alcatras.......without the nice sea views.
Get it sold, before the 6 year crash hits bottom in 2027.......the quick and the dead in this market.
You will get sea views. Approx 4km away!
Tend to agree with your last point.
Give me a LSB any day of the week. But it's not for everyone - you gotta love no neighbours, fresh produce, low or nil hot water bills, physical exercise, a sense of self security and time to yourself.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.