Auckland property prices continue decreasing (August 2024)

Auckland’s average asking price on Trade Me Property’s Property Price Index was $1,033,000 in June 2024, which is a decrease of 2.3% compared to May. This marks several months of price decreases in the super city. 

Prices in most areas tend to decrease slightly coming into winter but it’s clear that this is being exacerbated by the deteriorating economy and high interest rates. 

Listings stayed on Trade Me Property for an average of 68 days in May, up from 62 days in April. This is typical of winter and indicates that demand is dampening slightly coming into the cooler months. 

This could also be affecting asking prices - when properties stay on the market longer sellers tend to adjust their price expectations and accept lower offers. 

With that in mind, winter could be the perfect time for buyers to find great value properties, which may be more expensive in a few months' time when buyers come back to the market. Since there’s lower competition, buying during winter could be less stressful (after all, yours could be the only offer the vendors receive). 

Falling prices were felt most keenly by those selling larger houses in Auckland, especially those with 5+ bedrooms. In May the average asking price for these properties was down 9.9% compared with May last year. 

Since these properties tend to be the most expensive, they may be most affected due to the cost of living crisis (and perhaps because large families don’t want to move during winter). After all, people are refixing their mortgages, interest rates are increasing, insurance is more expensive and rates are going up. 

It’s a good time for buyers in Auckland at the moment.. The number of listings on Trade Me Property was up by 24 per cent compared to the same time last year. 

If you’re buying,that means you’ll have more homes and potential investments to choose from, with less competition for each. Because of this supply and demand imbalance, buyers are taking their time, which can be difficult for sellers. 

Expect this dynamic to change when interest rates start to decrease and buyers start feeling fear of missing out (FOMO) again.