Defying the winter chill

The latest Trade Me Property Price Index is out and it provides yet more evidence that house prices are on the rise nationwide.

In April, the national average asking price increased to a record high of $585,000.

This was up 2.1% on March’s average asking price of $573,000, and up 8.4% year-on-year.

Head of Trade Me Property Nigel Jeffries said this means those selling property are in a good position as the reignited market continues to burn up.

Since April 2011 the national average asking price has increased by $36,000, which is pretty close to New Zealand’s median annual wage after tax, he said.

“That shows properties are now earning more than the median amount earned by a Kiwi employee.

“It’s good news for property owners but a serious challenge for those aspiring to get a foot on the property ladder.”

Following last month’s rebound, the Auckland market continues to surge forward.

In April, Auckland’s average asking price increased to a new record of $843,150.

This was up 1.0% on March’s average asking price of $834,500, and up 13.8% year-on-year.

Jeffries said Auckland’s average asking price has risen more than two-thirds in the last five years.

“Back in early 2011 a typical Auckland property had an average asking price of $506,000.

“Fast-forward to today and that property has an average asking price of $843,000 – that’s $337,000 higher which means it has jumped up more than over $5,500 every month.”

Auckland’s market is doing well, but a number of markets around the country are currently giving it a run for its money.

For example, the Bay of Plenty’s average asking price saw year-on-year growth of 15.8% to hit a new high of $522,400 in April.

Jeffries said the region’s average asking price has gone up by more than $70,000 over the past 12 months.

“Over the past five years, average asking prices in the Bay have risen 37%, with the lion’s share of this over the last two years when more than $100,000 has been added to the average asking price.”

Meanwhile, regions near Auckland continue to see a “halo effect” from the SuperCity’s ongoing boom.

For example, Waikato’s average asking price has now gone up to $434,850.

“That’s an increase in average asking price of 13% compared to a year ago, pushing the five-year increase up 24%,” Jeffries said.

Other regions with significant year-on-year increases in average asking prices were the Hawke’s Bay (up 15.6% to $471,750) and Otago (up 10.8% to $443,900).