House Prices

Asking prices show confidence, Trade Me boss says

New Zealand’s average asking price broke through the $500,000 barrier for the first time in November, Trade Me’s data shows.

Thursday, December 04th 2014

The auction website’s Property Price Index measures trends in asking prices for properties listed on the site.

Head of Trade Me Property Nigel Jeffries said the record high asking price signaled ongoing confidence from vendors.

"The November data echoes the lift we saw in October, meaning sellers have continued to raise their price expectations to land at a new high water mark of $509,750. There has been a resounding resurgence in the property market after a pretty subdued winter and that all adds up to good news for sellers and a bitter pill for buyers to swallow."

Across all property types, the average asking price for the three months to November was up 13.7% year-on-year and 27.6% since November 2009.

Jeffries said there were clear signs across the country that the pace of price increase was steady, and only the West Coast reported a fall in price expectation in November. All other regions saw a year-on-year rise in average asking price, ranging from Waikato's small lift of 1.8%, through to the strong 24.1% increase in the Hawke's Bay. 

Five other regions showed double-digit growth: Taranaki (+18.2%), Canterbury (+12.5%), Otago (+11.6%), Auckland (+11.3%) and Southland (+10.8%).

Jeffries said the data from the country's major urban centres reflected a strengthening market heading into the pre-Christmas period, with solid increases in asking price expectations from sellers across Auckland, Wellington and Christchurch.

Jeffries said there was a significant rise in price expectations for small and medium-sized properties in November, up more than 15% and 13% respectively to new record asking prices. The average asking price for one- to two-bedroom homes was $334,700. For those with three or four bedrooms, the average was $514,050.

"The lift in seller expectations remains strong in the major metro areas, but we've seen this spread wider too. For example we've seen asking prices for three and four bedroom properties in Taranaki, Hawke's Bay and Bay of Plenty all reach record levels."

There are early signs that the pressure in the Christchurch residential for sale market is easing, with the November increase of 12.5% down on October's 13.6% increase.

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.