The average asking price of residential properties advertised for sale on Trade Me Property declined by more than $20,000 in March, as economic uncertainties began to take their toll on the property market.
The average asking price on the website was $862,550 in March, down $21,250 from February.
Average asking prices declined in 11 regions around the country and increased in three. Northland, Hawke's Bay and Otago were the only regions to post increases in March.
The biggest declines for the month were in Southland -$72,350, Bay of Plenty -$65,900 and Nelson/Tasman -$46,300.
While the average asking prices declined in March, the supply of properties for sale increased.
New residential listings on Trade Me Property were up 2% in March from February, while property searches on the website rose 5% in March from February.
"It's a great time for buyers who have been sitting on the sidelines, as they have more choice than they did a year ago, particularly in regions such as Otago and Southland, where new listings have jumped by 14% and 15% respectively," Trade Me Property Customer Director Gavin Lloyd said.
See the table below for the full regional figures.
13 Comments
Oh dear, more terrible property news, as this epic crash is now digging lower, into its next downleg.....
Cannot wait for the property Spruikerlerati to pop up and attempt to polish this ever stinkier property market Turd. I suggest the thickest gloves for spriukers, on their now ever shrinking Temu budget.....
I'm not seeing prices drop in my area, however I see more and more properties lingering on the market (6 months to 1+ year) when they would have been withdrawn before.
The wait, wait, waiting to sell, eventually leads to drops and plops.
Property continues to fall downwards, like always, since 2021.....
Dive dive dive....
Can the over leveraged survive the Orange depth charges. At what point to the banks computers say "not enough equity".
At what point to the banks computers say "not enough equity".
They can string it along. After their epic bubble burst, Japanese banks did not move to full mark‑to‑market quickly; it was a drawn‑out, roughly decade‑long process, with genuinely strict recognition only biting around the late 1990s to early 2000s, so we're looking at 8-12 years before banks were operating under a regime that broadly enforced mark‑to‑market–consistent valuations and had mostly recognized legacy losses. The combination of forbearance, political constraints, and gradual regulatory reform stretched what could have been a sharp 2-3 year mark‑to‑market adjustment into a “lost decade” of slow motion recognition.
Hey P,
Our bubble out -epics the Japanese one........thoughts?
Do we see this sharp value decline in NZ continue? Or slow air hiss for another 10 years?
more like a woopie cushion, a long slow fart with lumps?
I'm not comparing the Japanese bubble with the Aotearoa Ponzi directly. Important to remember that the Japan experience was far worse in CRE than residential housing and the implications for banks were corporate stresses more than h'holds. Their issue was land values as collateral (but also remember it has similarities to Aotearoa in that it flowed through to high-cost supply chain goods and services - one of our big problems at the moment).
What I'm saying is that banks have all kinds of ways to use smoke and mirrors / tricks to suppress any misery for their customers and for their shareholders.
Seeing many places sit on the market for months and months in Nelson, and often selling for the same as what they were previously purchased for or less for average properties.
Realistic prices selling, and given the cost of reno's, the majority of people I talk to can't be bothered with anything more than a kitchen or bathroom.
I can still see a scenario where house prices fall another 10-20% in nominal terms the next few years as interest rates rise and supply/demand continues to side with buyers instead of sellers.
At the same time we have another few years of 5% inflation giving a real fall in house prices of 20-30% (on top of what we have already had the past few years).
This would see house prices down, on average across the country, around the 40-50% point from the 2021 peak.
I think around then, housing starts to make sense again to purchase from a cash flow perspective - but by which time so many investors will have been burned that they will be extremely gun shy about re-entering the market - and given the fall in their equity, unless they are extremely cash rich, it may take decades before we see the same interest in the market from investors as we saw in the 2000's and 2010's - which would be classic asset bubble psychology - a lot of investors all buying when they should have been selling (2021) and a lot of investors unwilling to buy but are instead selling when they should be cashed up to make new investments (now through to whenever this market hits the bottom in real terms).
Ps a 50% fall in real terms takes us back to GFC level prices (in inflation adjusted terms)
Agreed. Re investors piling in I suggest the lure of tax free gains is two strong for them to hold out. Those with cash will pile in early and suck up some losses for those sweet gains. That said we have yest to see the impact of Simplicity kiwisaver funded housing really hitting the market either. Far more stock arriving to an orange colored development near you.
that's an oversized drop in BOP
And Southland...
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