Stock is up 13.8% in the city while sellers are urged to price realistically
Auckland's average asking price has fallen below $1 million for the first time in six years, according to realestate.co.nz data.
The city's average was $993,562 in September, more than $280,000 below its January 2022 peak of $1,274,829. The figure was also down 2.9% from August, Stuff reported.
Listings rose as prices eased. Auckland recorded more than 3500 new listings in September, up 7.7% from a year earlier. Total stock climbed 13.8% to 13,958 properties.
Vanessa Williams, realestate.co.nz's general manager of customer, called the shift significant for the country's largest property market. She said a million-dollar average asking price had "felt almost synonymous with Auckland" for a long time. She said, "dropping back below that level is notable."
"But it also creates opportunity, particularly for buyers who've been waiting on the sidelines," Williams said, according to 1News.
National picture
Nationally, the average asking price was $855,245 in September, down 0.2% from a year earlier.
Nelson and Bays fell below $800,000 for the first time in five years, to $791,917. Wairarapa had the largest annual decline, down 9.2% to $667,375.
Canterbury, Southland, Central Otago/Lakes and the West Coast posted their highest September averages. Canterbury rose 1.3% to $736,585, and Southland rose 5.9% to $593,723.
Stock keeps climbing
There were 34,001 properties on the market nationally, up 10.7% from a year earlier. Seven regions recorded double-digit increases. Gisborne led with a 62.7% rise. Southland was the only region with fewer properties, down 8.5%.
New listings totalled 9466 nationally, up 0.8%. They fell in 12 of 19 regions, led by a 21.1% drop in Southland.
Williams said there were more listings than last September, "and that wasn't an election year."
BNZ chief economist Mike Jones said growing listings and slowing sales meant unsold stock was still rising. "Ample supply means prospective buyers have more choice and time, and there is little to no pressure on house prices to rise," he said.
Williams said sellers must compete through "good presentation, strong marketing, and realistic pricing."
Asking prices versus sales
Asking prices are usually higher than sale prices, Williams told RNZ. Real Estate Institute data put Auckland's median sale price at $950,000 in August, unchanged from a year earlier, RNZ reported.
Values continue to slide
Separately, the Cotality Home Value Index fell 0.3% in September, its sixth straight monthly decline. The national median value of $797,078 sits below the June 2023 cycle low, Cotality said.
Auckland values fell 0.5% in the month, Law News reported. Cotality chief property economist Kelvin Davidson said higher mortgage rates, economic uncertainty and plentiful listings are likely to cap values for some time.
Rates in focus
The Reserve Bank of New Zealand raised the official cash rate to 2.75% on 2 September. It said the increase was meant to return inflation to 2%.
It was the second consecutive 25-basis-point rise, following July's move to 2.5%. ASB and Westpac lifted floating rates on 9 and 10 September, calculate.co.nz said.
Cotality said about 54% of existing mortgages by value are due to reprice within 12 months. It also said rising rates are squeezing investor cash flows.
