Auckland, Wellington and Waikato are now buyers’ markets, and other areas could follow as prices fall, according to property listings website Realestate.co.nz.
The national average asking price fell 0.9% to $934,538 between July and August. That was down from just over $1 million in January, when the average asking price had doubled in a decade.
Asking prices had fallen to 2021 levels in eight regions. However, two regions, Taranaki and the West Coast, recorded record prices last month.
Spokeswoman Vanessa Williams said the market had retreated from record highs earlier this year, but the past two years had been unusual, making comparisons difficult.
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The exponential growth we’ve had over the past 24 months just wasn’t sustainable. So we are entering a more normalized market, operating in a more sustainable way,” she said.
“I think I think we’re in a less frantic market, and I think that will probably continue for the rest of the year.”
Compared to August 2021, the average asking price in Wellington fell 6.0% to $903,997, 3.1% in Hawke’s Bay to $787,344, 1.6% in Manawatu/Whanganui to $627,564 and 0.7% in Nelson and Bays to $877,734.
Average asking price increased in Auckland (up 0.4% to $1.18 million), Northland (up 0.7% to $875,825), Southland (up 1.1% to $512,894 ) and Coromandel (up 1.1% to $1.16 million).
The number of homes available for sale in August had more than doubled from a year earlier, to 25,441, although Williams noted the country was in Tier 4 lockdown for part of August 2021.
Homes for sale were down 26,358 in July and below April’s year high of 27,000, but numbers were still healthy, she said. New registrations of nearly 7,500 remained flat from July.
Several factors weighed on the market. The borders were now open and people wanted to spend their money on something other than property; interest rates were rising and the supply of houses was also increasing.
Less credit available due to higher rates meant buyers weren’t budging as much on what they would pay for a property, Willams said. This meant that sellers’ expectations had to become more realistic, which also had an impact on prices.
“Unless there are massive legislative changes, or we see interest rates doubling, I don’t see trends changing particularly,” she said.
“I think there was a time when sellers were certainly in a strong position when it came to the transaction. But what I think we all forget is that it’s good to be a seller, but in general, you are a buyer.
With buyers’ markets in Auckland and Wellington, other larger centers were likely to follow.
However, Hawke’s Bay and Gisborne, which were previously buyers’ markets, fell back in favor of sellers in August.
“As the market continues to shift, we will likely see these ups and downs in market sentiment across the country. These shifts are likely to continue as we head into the warmer spring months,” she said. declared.
In Auckland, asking prices for apartments cooled in August, with average asking prices falling 9.9% to $695,762 from a year earlier.
The SBA warned on Wednesday that New Zealand could be halfway through one of the biggest declines in nominal house prices on record.
The bank’s economists said in their latest quarterly economic forecast that house prices are expected to continue falling through the middle of next year and the official exchange rate will peak at 4% by the end of the month. year before dropping in 2024.