Wellington and Bay of Plenty are no longer in the million dollar club of median asking home prices.
The New Zealand property report for April by realestate.co.nz shows that the tables are turning on the hot property market.
In March, Wellington entered the buyer’s market, and during April Auckland followed suit.
Average asking prices in these two major centers have also been on a largely downward trajectory since February 2022.
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The Bay of Plenty and Wellington both left the million dollar club in April. After several months of average asking prices north of $1 million, prices have fallen to $908,974 in Bay of Plenty and to $971,976 in Wellington.
Meanwhile, Waikato crossed the million dollar mark for the first time, with its average asking price up 41.2% compared to the same time last year.
Fifteen-year average benchmark asking prices were also seen in Gisborne, Hawke’s Bay, Otago, Southland, Coromandel, Central Otago/Lakes District and Wairarapa.
Compared to March 2022, average asking prices fell in Northland, Auckland, Bay of Plenty, Taranaki, Wellington, Nelson, West Coast and Marlborough.
Realestate.co.nz spokeswoman Vanessa Williams said that while there was still significant demand from buyers, the heat was out of the market.
“We can already see a cold trend in the market in Auckland and Wellington, so we will have to wait and see what happens in our region.
“We are used to the urgency of the market, where multiple offers and high competition have become the norm.
“For now, however, buyers have more time to do their due diligence and make an informed decision about their future properties.”
Head of Valuation James Wilson gives his assessment of the housing market.
Properties in Auckland and Wellington have taken longer to sell during April than they have averaged over the past 15 years since registrations began.
Williams said that Auckland and Wellington tend to lead real estate trends, so it will be interesting to see if buyer markets emerge in other areas over the coming months.
“Prices have been falling month on month in Auckland since February, and we’ve seen the same trend in Wellington,” she said.
In April, Hawke’s Bay, Otago and Manawatu/Whanganui also showed signs of moving into buyers’ markets.
Last month, buyers had plenty of options, with shares up 70.8% nationally compared to April 2021, a level not seen since before the pandemic.
Compared to last year, the biggest increase was in Manawatu/Whanganui, with the stock up 174.8% year over year, followed by Wellington (up 157.3%) and Hawke’s Bay (up 144.2%).
It will give buyers some breathing room, Williams said. “It is likely that these increases in stocks mean there is less rush for buyers to make decisions.”
Compared to April 2021, new listings are down nationally and in 12 of the 19 regions last month.
The most significant year-over-year declines were in Gisborne (down 21.2% with 52 new listings) and Southland (down 19.9% with 165 new listings).
Williams said sellers have remained enthusiastic in many parts of the country even though most regions are seeing a drop in new listings.
Compared to April 2021, listings are up 12.2% to 28.1% in Northland, Bay of Plenty, Hawk’s Bay, Nelson, Coromandel, Central North Island and Manawatu/Wanganui.
“New stocks and listings have been consistently down over the past few years, so these big hikes are likely to indicate changes in the market.”