Property asking prices bounce around as listings lift

Wednesday, 2 October 2024

Average asking prices for Wairarapa properties continue to bounce around, but that could be more of a vagary of the numbers rather than a market trend.

Realestate.co.nz released its latest data on Wednesday showing stock levels in Wairarapa had increased dramatically since September last year, but average asking prices locally were volatile.

The average asking price last month was $723,118, in August it was $767, 938, compared to July which was $731,971. Due to its relatively small number of listings, Wairarapa’s figures were prone to variation, whereas the national trend had asking prices remaining relatively stable.

More telling was that the 396 listings in Wairarapa last month was a 45% increase on the same time last year.

John Arends of Property Brokers Wairarapa said they were also seeing stock levels increasing, and new listings “significantly higher”.

He said this was especially the case in Masterton where properties were also spending fewer ‘days on market’ on average.

“Some of that activity can be attributed to spring listing period and also the expectation that properties are more likely to sell so vendors deciding to list.”

The agency had a 20% bump in listings for September.

Arends said increased saleability was mainly due to confidence around interest rates dropping with more decreases likely.

The South Wairarapa market was still “somewhat subdued, partly as a reflection of the Wellington market”, he said.

He didn’t read too much into Realestate.co.nz’s fluctuating asking price figures for Wairarapa over the last few months. “One month can distort averages a bit,” he said.

Realestate.co.nz spokesperson Vanessa Williams said the economic environment was shifting toward buyers, driven by declining interest rates, easing inflation, and August’s OCR cut, which boosted buyer activity.

Stock levels remained high nationally during September, providing potential buyers with plenty of options. Average asking prices also remained flat, marking the longest stretch of price stability since records began 17 years ago.

“For almost two years, our national average asking price has hovered between $860,000 and $890,000. We’ve never seen prices remain flat for this long,” Williams said.

Growing interest suggested buyers may be eager to act before the market changes, especially with another OCR review on the horizon, she said.

“Unprecedented price stability offers certainty for both buyers and sellers.”

In September, the national average asking price remained static, increasing just 0.2% year-on-year and 2.7% month-on-month. This marks 20 months of flat asking prices, the longest stretch of stability on record.

“Property market prices started flattening out in January 2023, when the national average asking price was $879,53. Almost two years later, we are sitting at $870,110,” Williams said.

“This gives buyers and sellers a rare degree of market predictability. Buyers can confidently enter the market, knowing prices have remained steady, while sellers can adjust their expectations based on these consistent trends.”