The average asking price of residential properties advertised for sale on Trade Me Property has declined by more than $60,000 over winter, while the average asking price in Auckland has declined by more than $100,000.
The average asking price of properties on the website hit its summer peak of $883,800 in February but then declined steadily to $823,300 in June, a drop of $60,500 (-6.8%).
In Auckland, the country's largest housing market, the average asking price declined from $1,096,000 to $992,700 over the same period, a decline of $103,300 (-9.4%) since February.
June was the first time that Auckland's average asking price has dropped below $1 million since the holiday-affected month of January.
In other main centre regions, the average asking price decline since February was -$54,250 in Waikato, -$42,450 in Bay of Plenty, -$81,750 in Wellington Region, -$14,100 in Canterbury and -$89,600 in Otago.
However, the biggest asking price decline between February and June was in the country's second smallest real estate market, with West Coast recording a drop of $104,200 (-20.8%) over that period.
Gisborne, the country's second smallest market, recorded an asking price decline of $72,600 (-10.6%).
The number of properties available for sale also declined, with total listings on the website dropping by about 5% between February and June.
Trade Me Property Customer Director Gavin Lloyd said the numbers were predictable for the time of year.
"It's fairly typical for the property market to shift down a gear or two as the temperature drops," he said.
3 Comments
Sales are always soft over winter. That said there are dark clouds for this years summer season in the form of the election. A number of options will make the summer selling season dead. No clear winner, the Left taking power and dropping Tax, and or TOP being king maker and dropping the land tax torpedo.
Those hanging on for dear life financially waiting for 2021 pricing to return better have a 10 year plus strategy.
Popcorn.
Probably nothing
I suspect many are waiting to see the outcome of the election before makin big decisions on this front. Many a boomer I know are in this boat, but if there is a hint of a capital gains tax being implemented then there will be a rush for the exit to capitalise on the gains and this will only decrease prices accordingly with the increase in supply. The usual comment I hear is along the lines of "why should I have to pay tax on the gains I've gotten from my hard work and risk taking!" My response about an investment house is a business venture so should be taxed accordingly never goes down well. They want to be treated as ma and pa investors when it benefits them, and then to be treated like a business when it also benefits the tax purposes, but not to be taxed appropriately. This naturally isn't representative of all baby boomers so I don't want to throw all under the same umbrella, more so those I know locally.
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