Trade Me prices at record high

The Trade Me Property Price Index was up 2.5% in October, month-on-month.

It measures trends in asking prices for residential property listings added to Trade Me Property by real estate agents and private sellers over the previous three months.

Head of Trade Me Property Nigel Jeffries said the rise in asking price was a sign the property market had a spring in its step after a subdued winter.

"The October data shows the first significant increase in sellers’ price expectations in six months as the market regains confidence. Up until now it has been slow to spark into life, potentially held back by the September election."

The average Trade Me asking price across all property types in the three months to October was $494,750, a year-on-year increase of 12.2%.

Jeffries said the October asking price represented a new record high, exceeding the prior peak asking price of $491,050 seen in March 2014. That was an overall increase of 23.9% since October 2009.

Thirteen regions showed an increase in average asking prices, and Jeffries said 10 showed a quickening pace of year-on-year price inflation compared to September.

"Taranaki and Gisborne again led the growth in average asking price, while there was sustained growth in Canterbury which was up 1%. Hawke’s Bay and Manawatu/Wanganui also experienced double-digit growth. At the other end of the spectrum, Waikato and West Coast were the only regions where average asking prices contracted, down 2% and 6% respectively."

Auckland’s asking price increase dropped down a gear from 10.2% to 9.4%. Wellington remained steady at 6.9% growth.

Jeffries said there was a significant rise in the price expectation for three- and four-bedroom homes as the average price passed the $500,000 level for the first time.

Smaller properties also had strong growth in average asking price, up 13% year-on-year.

Jeffries said the strength of pricing in the apartment sector stood out. "Driven by the volume of apartments in Auckland, the average asking price for apartments broke through the $400,000 barrier for the first time and landed at $405,000, up a very strong 14.6%on a year ago. This shows the strong appeal of compact living as both an investment option and a first step onto the property ladder."

Auckland apartment pricess increased 14.6%, townhouses 5.2% and units 11.9%. Nationwide, there were increases of 10.2%, 6.5% and 12.4%, respectively.