Asking prices on Trade Me Property are still going up but not as quickly as they were

The rate at which house prices are rising is starting to slow, according to Trade Me Property.

The average asking price of residential properties advertised on the website hit a new high of $590,850 in June, up from $584,400 in May.

However the rate at which asking prices are going up  is slowing.

May’s average asking price was up 9.2% compared to May last year, while June’s average asking price was up 8.5% compared to a year earlier.

The trend was most noticeable in Auckland where the average asking price of properties advertised on the website hit a new high of $848,100 in June, up 0.7% compared to May’s asking price of $842,550.

However the average Auckland asking price in May was up 12.7% compared to May last year, but in June that had dropped back to 8.4% compared to a year earlier.

“Auckland’s asking prices are up almost $75,000 on this time last year but that is significantly down on where things were at in August 2015, when the average asking price leapt $130,000 in a year, Trade Me’s head of property Nigel Jeffries said.

“For now it looks like the incredible surges we’ve seen in Auckland may be slowing down.

“That’s not to say the market is stalling, but we’re seeing the market take a bit of a breather after sprinting ahead for months.”

And prices are rising more quickly in several other parts of the country than in Auckland.

The biggest increase in average asking price over the last 12 months has occurred in Otago, where they have increased by 23.4% in the 12 months to June, followed by the Waikato +21.9%, Hawkes Bay +17%, Manawatu/Whanganui +17%, and Northland +14%.

The only region to record an annual decrease in the average asking price was Marlborough where it was down 2.4% compared to June last year.

Home units continue to be popular, with the average asking price of Auckland units rising by $87,000 (17.5%) over the last 12 months to hit a new high of $589,000 in June.

“Units are popular with investors, they’re cheaper than a lot of housing options but they’re still popular with renters and they sell well,” Jeffries said.

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