Auckland property asking prices drop $100k amid supply boom

The property market has been savaged with $100,000 trimmed off Auckland property prices since March, according to the latest Trade Me data.

The price plummet is being linked to a supply boom.

Helen Kay is loving her new home in Auckland's Millwater. There's plenty of space for her two dogs Jack and Lily.

But the location, a 30-minute drive from Auckland CBD, wasn't her first choice.

"We sold quite late in the piece and property prices had already started dropping, so that really hindered what we could buy," she told Newshub.

In a rapidly-evolving property market, timing is everything.

"We sold and then we wanted to leave it as late as we could to buy, hoping the market had dropped further, but you do end up homeless, so we had to buy something, but if we'd waited another couple of months, I think we could have got more of a bargain," she said.

New Trade Me data shows average asking prices for properties across the country have dropped by 6 percent, or $61,000, since March.

Auckland has seen the largest plunge - the average asking price is down $100,000 followed by Wellington with an $82,000 fall. Prices in Gisborne, Bay of Plenty and Hawke's Bay are all down by at least $51,000. The only region unscathed was Otago.

Trade Me's Gavin Lloyd says the price drops come down to a supply rush.

"The month of July, 53 percent more listings on site than there was 12 months ago on Trade Me Property," he told Newshub.

While it might seem like a buyer's market, it's getting more expensive to borrow money. ASB is the latest bank to lift home loan interest rates by half a percent in line with the Reserve Bank increasing the official cash rate to 3 percent. Analysts expect a further hike in October.

"Interest rates are a lot higher than they were 12 months ago, the cost of living is having a massive impact on people's purchasing power at the moment, lending criteria is also a lot harder than it was 12 months ago," Lloyd explained.

And despite the City of Sails taking a house price hit - the city's average asking price is still above the $1 million mark.

House prices may be falling but the city's still unaffordable for many.