Blistering Growth in New Zealand Asking Prices
04 November 2011
The average asking price of properties in Auckland was NZD568,778 in October according to the latest data from realestate.co.nz. This is up from NZD558,604 last month, when the average asked made an even bigger jump from NZD527,979 in August. You would think this was a "prime city thing" like we are seeing around the world, but the national average asking price in October was NZD434,161, up from NZD425,565 the previous month, and beating the previous record high of NZD429,250 set in April.
I have often said that we shouldn't be too keen on asking price rises, because they don't always mean things are going well, in fact in times of negative buyer sentiment, rising asking prices are exactly the opposite of what you want to see. However, this is not the case in New Zealand, where sale prices are tracking the growth in asking prices, although the comparison is never exact due to the lag in sale-price data. The latest comparison can be seen below.