Record-low interest rates combined with a low number of properties for sale have caused sellers' price expectations to soar. But data also shows in some regions, the annual increase in average asking price was small, even negative.
Property listing data from realestate.co.nz for October shows the national average asking price increased by 12.4 percent year-on-year, to $772,288. For properties in Manawatu/Whanganui, the average asking price hit the highest seen in the region in 13 years, an increase of 20.4 percent year-on-year, to $520,495. Record average asking prices were also set in Auckland, Waikato, Bay of Plenty, Hawkes Bay and Wairarapa.
But not all those selling their homes listed them at prices higher than October last year. While the average asking price in the Gisborne region was up 38.93 percent year-on-year, in Central Otago/Lakes, the average asking price was down 3.44 percent.
The below data sourced from realestate.co.nz shows the top and the bottom six regions for average growth in asking prices. It compares the percentage difference in average asking price between October 2019 and October 2020.
Top six regions by average asking price
Here are the six regions where average asking prices have grown the most year-on-year, from October 2019 to October 2020.
- Gisborne, up 38.93 percent year-on-year.
- West Coast, up 24.88 percent year-on-year.
- Manawatu/Wanganui, up 20.38 percent year-on-year.
- Coromandel, up 15.33 percent year-on-year.
- Hawkes Bay, up 14.75 percent, year-on-year.
- Taranaki, up 14.26 percent, year-on-year.
Bottom six regions by average asking price
Here are the six regions where average asking prices have grown the least year-on-year, from October 2019 to October 2020.
- Central Otago/Lakes, down -3.44 percent, year-on-year.
- Nelson & Bays, up 2.87 percent, year-on-year.
- Canterbury, up 3.94 percent year-on-year.
- Marlborough, up 6.56 percent year-on-year.
- Central North Island, up 6.60 percent year-on-year.
- Wairarapa, up 6.88 percent year-on-year.
Realestate.co.nz spokesperson Vanessa Taylor, said over the last year, average asking prices for properties in the regions have shown the biggest changes, large and small.
"Central Otago/Lakes seems to have been impacted by the challenges in the tourism industry...the region has seen increases in total stock available, while the rest of the country has seen stock tighten," Taylor said.
For much of New Zealand, demand for property has exceeded supply (listings). This causes property prices to rise. As is the case in Central Otago/Lakes, if supply increases and demand either drops or remains the same, this has a dampening effect on prices.
"October is the first month we've seen a year-on-year drop in average asking price for Otago/Lakes since May," Taylor added.
The data is based on all new properties listed on realestate.co.nz each month. For the month of October, Auckland had the biggest increase in new listings, up 36.8 percent year-on-year. Overall, nationwide listings were up 13.8 percent year-on-year.
By comparison, 'stock' records the total number of properties for sale on the website. In October, the nationwide stock fell 18.7 percent year-on-year, with 18,141 properties available to buy.
Taylor confirmed that the year-on-year nationwide increase in listings compared to the decrease in total stock confirms that properties are theoretically selling at a faster rate than they're coming on.