Wellington is still a tough market to crack for prospective home buyers, the latest Trade Me Property data reveals.
The average asking price in the capital rose 2.6% between January and February to a new record of $528,000, according to Trade Me’s Property Price Index.
Head of Trade Me Property Nigel Jeffries said Wellington had set five record prices over the past six months and was showing no signs of letting up.
“We’ve seen massive demand from renters in the region and the for sale market is in a similar boat.
“There are huge numbers of people looking and the supply of houses for sale just isn’t getting anywhere near that demand, that’s resulted in a surge in the average asking price of almost $60,000 over the past six months, which is more than 12 per cent.”
Jeffries said the Wellington market really started “to come alive” 18 months ago, after a long period of stagnation.
“Between January 2008 and January 2015 the average asking price increased by only $10,000, however in the last 18 months it has jumped by more than $100,000.”
As buyers look for the most affordable way into the property market, the data showed demand for small 1-2 bedroom houses was in peak demand over February.
In Wellington, the average asking price for a small home was up 17.1% in the past year to a new record of $398,300, whereas the average asking price for large 5+ bedroom houses had fallen 1.8% to $786,200.