Supply took a turn in January, indicating a market shift
January Property Price Index15 February 2022
The national average asking price sustained record high year-on-year growth for the second month in a row in January to reach an all time high of $958,100, according to the latest Trade Me Property Price Index.
Trade Me Property Sales Director Gavin Lloyd said the national average asking price increased by $189,100 in January when compared with the same month in 2021. “In December we saw the national average asking price increase by 25 per cent year-on-year for the first time on record. Last month, it jumped a quarter in 12 months again to sit comfortably in the high $900,000s for the second month running.”
Looking around the country, Mr Lloyd said every region’s average asking price increased by at least 15 per cent year-on-year in January, with the biggest increases seen in Hawke’s Bay (31%), Canterbury (31%) and Manawatū/Whanganui (28%).
“Interestingly, despite seeing the largest percentage increases out of all the regions, Hawke’s Bay and Manawatū/Whanganui, along with Auckland, were the only regions to not see an all-time high average asking price last month.”
Mr Lloyd said despite the colossal price increases, supply took a turn in January, indicating the market might be seeing a shift. “We have long said that while it’s impossible to know how long these price increases will continue, such immense growth is just not sustainable in the long-run.”
Nationwide, Mr Lloyd said the number of houses for sale increased by 18 per cent year-on-year last month. ”This follows the annual supply jump of 6 per cent we saw in December, which marked the first time supply has increased since April 2021.
“The lower North Island in particular looked to be re-gaining confidence in the market last month, with incredible year-on-year increases in the number of listings seen in Wellington (up 91%) Hawke’s Bay (up 87%) and Manawatū/Whanganui (79%).”
Mr Lloyd said the only regions that did not see an increase in supply last month were Canterbury (down 11%) and Northland (down 2%). “Nationwide demand, on the other hand, dropped by 11 per cent in January when compared with the same month in 2021.”
Looking ahead, Mr Lloyd said the coming months will be key to understanding what shape the market is in following two years of uncertainty. “December and January showed signs that the market might be cooling off, but some of that is likely due to the Christmas break being a slow period. If supply increases continue later into the year we may see some market pressure alleviated, and prices settle as a result.
“What we do know is that we’re likely to see a busy few months ahead, as buyers who have missed out have more stock to choose from and, in turn, sellers are encouraged to list as they too will have more options to move into."
South Wairarapa becomes Wellington’s most expensive spot
In the Wellington region, the average asking price for a property reached a new high of $975,050 in January, increasing by 26 per cent year-on-year. “For the first time, South Wairarapa was the most expensive district in the region, with a record high average asking price of $1,095,500.”
Looking at Wellington City, Mr Lloyd said the district’s average asking price reached an all time high of $1,064,050 last month, putting it in second place. “The third most expensive district in the region was Porirua, with an average asking price of $1,010,950.”
|District||Average asking price - January 2022|
|South Wairarapa||South Wairarapa||$1,095,100*||$1,095,100*|
|Wellington City||Wellington City||$1,064,050*||$1,064,050*|
While supply skyrocketed in Wellington last month, demand in the region was down 6 per cent in January when compared with the same month in 2021.
The capital’s most popular property in January was a three-bedroom, three-bathroom house on Torless Terrace in Thorndon with an asking price of $2,400,00. “It was watchlisted 330 times in its first two days onsite.”
Auckland prices increase by 23 per cent in 12 months
The average asking price in the Auckland region reached a record $1,250,500 in January, climbing 23 per cent year-on-year. “This marked a slight drop on the month prior, when the average asking price in the region was $1,253,300.”
“Looking at Auckland City, the average asking price was $1,348,850, making it the third most expensive district in the region.”
The two most expensive districts in Auckland in January were Waiheke Island ($1,826,350) and North Shore City ($1,461,800).
|District||Average asking price - January 2022|
|Waiheke Island||Waiheke Island||$1,826,350||$1,826,350|
|North Shore City||North Shore City||$1,461,800||$1,461,800|
|Auckland City||Auckland City||$1,348,850||$1,348,850|
Supply in the Auckland region was up 11 per cent year-on-year in January, while demand was down 23 per cent.
Last month’s most popular Auckland property was a four-bedroom, two-bathroom house on Church Street in Onehunga with an asking price of $3,500,00. “It was watchlisted 277 times in its first two days onsite.”
Record average asking prices for all house sizes
Mr Lloyd said nationwide, houses of all sizes saw their highest ever average asking price last month. “A new record was seen for medium sized house prices, with the average asking price for 3-4 bedroom properties increasing by 27 per cent year-on-year to reach $978,000.”
Mr Lloyd said the national average asking price for units reached a record high in January, at $640,800. “This marked a 25 per cent increase when compared with the same month in 2021.”