Asking prices for Wellington homes down by four per cent since April

Press Release – Trade Me Property
The upcoming general election and the Reserve Bank’s Loan to Value Restrictions (LVRs) have cooled the New Zealand property market with the nationwide average asking price remaining relatively unchanged in the last month, according to the latest Trade Me Property Price Index.

Head of Trade Me Property Nigel Jeffries said New Zealand’s average asking price has stalled at $631,350 – down very slightly from $632,850 in June and falling 2.1 per cent since peaking at $644,000 in April.

Mr Jeffries said Wellington was an example of the LVRs and the election slowing the market.

“While there are less properties on the market in Wellington, the average asking price has dropped 4 per cent since April this year to $522,550. Generally the dip in supply will stoke prices, as demand outstrips the listings available but we’re not seeing that at the moment.”

“Although the drop is significant, the average asking price still 10.9 per cent higher than July last year. I’d expect to see the average asking price move pretty quickly after the election-bred uncertainty passes.”

Small houses proving popular

The popularity of small houses (1-2 bedrooms) has increased steadily over the last 12 months.

“Small houses were by far the most popular housing type in July with a nationwide increase of 9.4 per cent in the past year to $424,250. Wellington led the trend with a 15 per cent jump in the last 12 months,” Mr Jeffries said.

Medium houses (3-4 bedrooms) were second, up 6.4 per cent in the last year followed by large houses (5+ bedroom) which have only increased 5.2 per cent.

“It comes as no surprise that we are seeing a growing demand for small houses given they are prime real estate for investors and first-home buyers. The bigger ticket homes with 5 or more bedrooms are becoming less and less feasible for many New Zealanders and this is a trend that will likely continue.”

Units price dips

“We are continuing to see an annual drop in the average asking price of units across New Zealand which is down 5.3 per cent since July last year.

Apartments on the other hand have shown steady annual growth with a 15.4 per cent increase nationwide. Mr Jeffries said this was driven by the growing demand for apartments in Auckland which grew 14.1 per cent in the last 12 months.

About the Trade Me Property Price Index:

• The Trade Me Property Price Index measures trends in the expectations of selling prices for residential property listings added to Trade Me Property by real estate agents and private sellers over the past three months.

• It provides buyers, sellers and realtors with insights into ‘for sale’ price trends by property type and property size.

• The Index is produced from data on properties listed on Trade Me Property in the three months leading up to the last day of each period. Each period’s value is a truncated mean of the complete three months’ worth of listings. This is to better reflect trends in property prices rather than month-to-month fluctuations in housing stock.

• The Index uses an “80% truncated mean” of the expected sale price to calculate the average asking price. This excludes the upper and lower 10% of listings by price, and averages the expected sale prices of the remaining properties.

• It provides an insight into ‘for sale’ price trends by type and size of property. Other reports aggregate property price data across these various properties.

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2 comments:

  1. Mike, 22. August 2017, 16:52

    That is misleading as property prices are not down 4% in Wellington. They even say on the data base of trademe ads some houses asking prices are up 10% .
    Trade Me here only uses an estimate… at best a guess for three months (averaged asking price on trademe not the actual sale prices). Maybe trade me is not the best place to sell your unit (if advertised prices are down).

     
  2. luke, 23. August 2017, 0:12

    i’m relieved I bought my (extremely) crappy house in 2011 as there is no way I could afford it now. I’m also disappointed I didn’t finamce myself to the hilt in 2011 and buy a more expensive house as I’ll probably not get such an opportunity again.

     

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