Average asking price of Auckland homes advertised on Trade Me Property has fallen for two consecutive months

Average asking price of Auckland homes advertised on Trade Me Property has fallen for two consecutive months

The average asking price of Auckland residential properties advertised for sale on the Trade Me Property website dropped 1.5% in January from December.

That followed a fall of just under 0.5% in December (see chart below), and is the first time average Auckland asking prices have fallen for two consecutive months since June 2012.

"We're seeing definite signs the Super City is taking its foot off the gas after a very wild ride," the head of Trade Me Property Nigel Jeffries said.

However even with the latest dip, average asking prices in Auckland were still up 11.7% in January compared to a year earlier.

Double digit annual growth in average asking prices was also recorded in five other regions last month being Otago, Northland, Wellington, Taranaki, and Gisborne (see map below).

Only two regions had average asking prices in January that were lower than they were in January last year - Canterbury (-0.2%) and West Coast (-1.6%).

The decline in Canterbury was likely due to an annual 1.1% fall in average asking prices for 3-4 bedroom houses, which is still the most common type of housing in this country.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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two quarters of negative growth constitutes a recession, how many months of negative prices before we call it a correction

They will spin it.. Call it a "necessary correction"

Houses for Sale on TradeMe in Auckland = 10272

On the North Shore of Auckland where I live and have been watching closely = now up to 1236 on TM and 1538 on Realenz (up from 987 a month ago)

Of those 1538 on Realenz for North Shore - 600 now Fixed price (was 556 a WEEK ago) & 462 now "negotiation" (was 400 a WEEK ago)

Interestingly to RENT sits constantly around 490-500 houses - it hardly fluctuates

Sooooo what shortage?

Its obvious that the 41% of all activity being speculators in last few years has been the issue.

Interesting times................

If you're happily living in your own family home and have no plan to sell any of your rentals then IT MAKES NO DIFFERENCE if the house prices crash or rise or remain the same. Just sit back, put your feet up and watch the dramas unfold hahaha.

Agreed for once

Homeowners can just ride it out.

However data shows that it was speculators (refuse to call them investors) were the ones really cranking up the borrowing (and lots interest only) - and most likely secured against the family home (because you just cant lose!)

So with no capital gain, increasing stock and rising interest rates they are heavily exposed - period.

Zero sympathy.

https://www.interest.co.nz/property/82308/new-official-reserve-bank-figu...

Don't worry mate, I don't think anyone is assuming RE agents give a rats arse about the average New Zealander anyway, or the country as a whole.

Renters can be happy also, irrespective of house pricing . Pleasing to see that homeowners and investors will remain stoically happy as prices slide down the snake.

Yes, if you remain happy.

The council has undertaken a lot of borrowing to pursue growth projects and activities (costly exurban sprawl), whilst there has been minimal private constructive growth. The debt will need to be serviced and the ratepayers are going to be left with the bill.

Other major cities in the region have spent the last 5 years with private building occurring much faster than Auckland and a large regional oversupply of housing/office space will be hitting in 2 - 3 years. Auckland is going to become a city with high debt, that is priced unattractively to renters.

Renters will happily leave.

Simple logics really, buyers are aware they are buying at the top of the wave, they now adopt the inevitable conclusion that let's wait and see. This has, and always will be the commencement of the correction, where and how far it will go no one knows, my personal view is prices will drop even further, the curve now has a slope.