Trade Me: More Kiwis looking for homes in regional NZ

Wednesday, 20 February 2019

Auckland selling prices were down about 3 per cent over the three months to January, Cameron Bagrie said.

New Zealanders are increasingly willing to look outside the main centres to buy a home, Trade Me says.

It has released its latest data, which shows, for New Zealand excluding the three largest centres, average asking prices were up 6.7 per cent to a new record of $525,100 in January.

'We've been seeing the 'halo-effect' phenomenon for some time as Auckland property prices grew, but it's spread well beyond that now,' said Head of Trade Me Property Nigel Jeffries.

'A growing number of Kiwis are buying property outside the three major metro areas. They often offer the potential of better work/life balance, provide investment opportunities and you can often get more 'bang for your buck'.'

* House prices rose $90 a day outside Auckland: Trade Me

This Invercargill four-bedroom home is advertised for less than Southland's average asking price of $311,800.

* Hard to rent in Wellington? Buying's no better**

Gisborne had the biggest increase in asking price, up 23.1 per cent on 2018 to an average asking price $381,700.

That was followed by Southland, up 10.2 per cent to a record $311,800 and Bay of Plenty up 5.6 per cent to $644,100.

'The property market usually kicks back into gear in January after the Christmas lull, but it's pretty unusual to see average asking prices jump year-on-year in every region,' Jeffries said.

'There are plenty of New Zealanders who have a new home on their New Year's resolution list - we've seen a 23 per cent increase in the total number of views on property listings nationwide compared to last January.'

This Gisborne three-bedroom home is advertised at just over the region's average asking price of $381,700.

CoreLogic data shows that first-home buyers are particularly active in Palmerston North, where they make up almost 30 per cent of the market, and New Plymouth, where they are just under 25 per cent.

The average price paid by first-time buyers in Queenstown is up from $420,000 in 2014 to $943,000 - an increase of 125 per cent.

But that data shows that in cheaper markets, first-home buyers are making the most of lower prices to buy higher-quality houses.

In Palmerston North they paid only 13 per cent less on average than the market average, and in New Plymouth, 14 per cent less.

In Auckland and Queenstown, they were buying homes that were 18 per cent and 22 per cent cheaper, on average.

AUCKLAND SLOWS

Jeffries said asking prices in Auckland were slowing and there was more stock on the market.

'The demand and supply equation is finally levelling out in Auckland, which means it's a great time to be a buyer if you have the necessary deposit. The average asking price remained stagnant in January at $919,150, up just 0.8 per cent year-on-year and we saw a 10 per cent increase in the number of properties for sale in the region.'

Economist Cameron Bagrie, of Bagrie Economics, said Real Estate Institute data showed Auckland prices down about 3 per cent in the three months to January. 'My general feeling is that will continue into February and March.'

He said people were starting to reset their expectations of what their homes might sell for, which would help to get sales moving again.

In Wellington, average asking prices were up 8.4 per cent to $618,100.