New Zealand house prices fell slightly in December - Trade Me data

The average asking price nationwide fell slightly to $864,000, but Trade Me says it's a minor drop.
The average asking price nationwide fell slightly to $864,000, but Trade Me says it's a minor drop. Photo credit: Newshub.

House prices across Aotearoa dropped by 3.7 percent in the year to December, according to Trade Me's latest data.

Nationwide demand for homes also fell a "substantial" 30 percent between November and December. Supply also dropped 13 percent.

The average asking price nationwide fell to $864,000. But Trade Me Property spokesperson Casey Wylde said that was relatively minor.

"The property market has seen huge change in 2023 as both sellers and buyers have navigated rising interest rates and inflation but what we are seeing now is the market returning to normality."

Tāmaki Makaurau/Auckland, down 7.1 pct, and Pōneke/Wellington, down 5.8 pct, had the biggest annual price falls.

Wylde said there were generally more listings in the big cities which could explain bigger price falls.

"So sellers may be adjusting their prices to remain competitive."

Waikato house prices dropped 5.4 percent in the year to December. The average is now $817,000.

Tāmaki Makaurau/Auckland is still the most expensive region to buy a home with average prices at $1,068,000.

Te Moana a Toi/Bay of Plenty is the second-priciest region, with an average asking price of $901,000.

"This is primarily attributed to the Tauranga market, where prices are hovering close to the million-dollar threshold," said Wylde.

Tauranga prices fell 4.2 percent in the year to December to $975,000.

In terms of the regions, a few have pricier homes than Waitaha/Canterbury ($707,000) and Pōneke/Wellington ($825,000).

Prices across both Te Tai o Aorere/Tasman and Whakatū/Nelson increased slightly to $877,000, while prices in Te Tai Tokerau/Northland fell to $847,000.

"When we look outside Auckland, we find some areas where homes are even pricier than in the cities. This happens because houses there are often bigger, making the average price higher," Wylde said.

Te Tai Poutini/West Coast had the biggest price gains, up 9.0 pct to $465,000.