Nationwide property prices have declined from April as signs of a slowdown start to appear
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In May, the average asking price for a typical Kiwi property dropped 0.6% from April, according to the latest Trade Me Property Price Index.
The average asking price in May was at $640,650, and while asking prices remain some 10% up on a year ago, “signs that a slowdown is starting” could be seen, head of Trade Me Property Nigel Harris said.
“There’s no need for homeowners to worry, the market is still doing exceptionally well, but buyers will be pleased to see that the rate of growth appears to be easing back,” Harris said.
The City of Sails, with a “stagnant” market and the average asking price dipping 0.7% to $919,000, is experiencing a more significant slowdown than the rest of the country.
“The way things were going we’d expected to see prices closer to the $1m mark by now, but the LVRs and other restrictions appear to have slowed the Auckland market right down,” Harris added.
Despite Auckland remaining very popular with buyers, with a leap of 44% in the last three years and an average asking price landing at $1,428,950, large houses are a “perfect example of a slowing Auckland market”, said Harris.
“Back in June 2014 the average asking price for house with five or more bedrooms broke the $1m mark.
“Ten months later it jumped from $1m to $1.1m, before hitting $1.4m in October 2016. Since then prices of large houses in Auckland have been hovering between $1.38m and a high of $1.44m as the market looks to head into a holding phase.”
However, for the first time since 2008, amidst market slowdown, the average asking prices in all 15 regions of the country showed a year-on-year increase.
Growth returned to positive in West Coast and Canterbury, while Waikato, Northland and Bay of Plenty, similarly, grew by 19.9%, 20% and 10.5% respectively.
“While we’re seeing some easing in property prices - it’s fair to say the New Zealand property market is enjoying strong growth,” Harris said. “Seeing positive growth for every region compared to May 2016 is amazing and not something we expect to see very often.
The average asking price in May was at $640,650, and while asking prices remain some 10% up on a year ago, “signs that a slowdown is starting” could be seen, head of Trade Me Property Nigel Harris said.
“There’s no need for homeowners to worry, the market is still doing exceptionally well, but buyers will be pleased to see that the rate of growth appears to be easing back,” Harris said.
The City of Sails, with a “stagnant” market and the average asking price dipping 0.7% to $919,000, is experiencing a more significant slowdown than the rest of the country.
“The way things were going we’d expected to see prices closer to the $1m mark by now, but the LVRs and other restrictions appear to have slowed the Auckland market right down,” Harris added.
Despite Auckland remaining very popular with buyers, with a leap of 44% in the last three years and an average asking price landing at $1,428,950, large houses are a “perfect example of a slowing Auckland market”, said Harris.
“Back in June 2014 the average asking price for house with five or more bedrooms broke the $1m mark.
“Ten months later it jumped from $1m to $1.1m, before hitting $1.4m in October 2016. Since then prices of large houses in Auckland have been hovering between $1.38m and a high of $1.44m as the market looks to head into a holding phase.”
However, for the first time since 2008, amidst market slowdown, the average asking prices in all 15 regions of the country showed a year-on-year increase.
Growth returned to positive in West Coast and Canterbury, while Waikato, Northland and Bay of Plenty, similarly, grew by 19.9%, 20% and 10.5% respectively.
“While we’re seeing some easing in property prices - it’s fair to say the New Zealand property market is enjoying strong growth,” Harris said. “Seeing positive growth for every region compared to May 2016 is amazing and not something we expect to see very often.
