Year-on-year price growth still strong

Property price growth might be on ice but Trade Me Property’s latest price data shows there is still plenty for property owners to be happy about.

Tuesday, August 22nd 2017, 11:15AM

by Miriam Bell

The Waikato has seen stellar year-on-year price growth

Average asking prices have stalled nationwide and in the main centres, according to the July instalment of Trade Me Property’s price index.

The national average asking price came in at $631,350, which is down on $632,850 in June and 2.1% lower than the peak of $644,000 in April.

Auckland’s average asking price rose by just 0.1% to $912,000 in June, while Wellington has seen a 4% drop in average asking price since April this year to leave it at $522,550.

Head of Trade Me Property Nigel Jeffries put the cooler market down to the impact of the LVRs along with uncertainty caused by the looming election.

In Auckland, the slowdown seemed more pronounced as people had become accustomed to seeing ongoing big increases in the region’s price, he said.

“Buyers appear to be holding back, but there’s plenty of choice for them out there.

“The number of Auckland listings for sale on Trade Me Property is up almost 20% in the last 12 months so we think now is a good time to try your luck, if you’ve got the deposit behind you.”

However, while price growth may have stalled, the data also shows that every region in the country saw strong year-on-year growth in average asking prices.

Waikato was the leader of the pack with its average asking price up 19.2% in the last 12 months, while Northland followed close behind with a year-on-year rise of 15%.

The Bay of Plenty was another standout. Its average asking price rose by 8.9% year-on-year to hit a record of $595,100 in July.

While Wellington may have seen a significant dip in prices since April, the average asking price in July was still 10.9% higher than July last year.

Likewise national price growth may have slowed in recent months, but the national average asking price has still gone up by 6.8%, or $40,000, since July 2016.

Jefferies said it was rare for every region in the country to see year-on-year increases and it should give property owners plenty to smile about.

In recent weeks, a build-up of evidence has highlighted the much slower conditions now present in the property market.

Like Jeffries, many commentators have pointed to the LVRs as the cause for this and a number of real estate representatives and politicians, including the Prime Minister, have called for a review of the LVRs in response.

But economists have said any changes to the LVR are not yet warranted and are highly unlikely in the near future.

Read more:

LVRs are not going anywhere

No end in sight for LVRs

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NZ slips in global price rankings »

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