Auckland's average asking price falls below $1 million for first time in six years

What happened

Auckland's average property asking price has dropped below $1 million for the first time in six years, according to new data from realestate.co.nz. The figure was $993,562 in September, down 2.9% on the month before and more than $280,000 below the January 2022 peak of $1,274,829.

Stock is rising. More than 3500 new listings came onto the Auckland market in September, up 7.7% on a year earlier. Total stock rose 13.8% to 13,958 homes.

Realestate.co.nz's Vanessa Williams says the sub-$1 million figure is notable, because a million-dollar average felt almost synonymous with Auckland. She says the mix of almost 14,000 homes for sale and asking prices well below their peak has created one of the most buyer-friendly markets the city has seen in years. She also says sellers appear to be listing with realistic prices, and suggests some may want to sell before the election.

Williams notes asking prices usually sit above final sale prices. Real Estate Institute data put Auckland's median sale price in August at $950,000, the same as a year earlier.

BNZ chief economist Mike Jones says listings are growing while sales turnover growth has slowed, so unsold stock keeps building. He says buyers have more choice and time, and there is little to no pressure on prices to rise.

Nationally, the average asking price was steady at $855,245, down 0.2% on a year earlier. Nationwide stock rose 10.7% to 34,001 properties. Nelson and Bays fell below $800,000 for the first time in five years, to $791,917. Wairarapa had the biggest annual fall, down 9.2% to $667,375. Canterbury, Southland, Central Otago/Lakes and the West Coast each hit a September record high for average asking price.

Key facts

• Auckland's average asking price was $993,562 in September, the first time below $1 million in six years.
• It is down 2.9% on August and more than $280,000 below the January 2022 peak of $1,274,829.
• Auckland stock rose 13.8% to 13,958 homes, with more than 3500 new listings in September.
• The national average asking price was $855,245, down 0.2% on a year earlier.
• Wairarapa had the largest annual fall, down 9.2% to $667,375.

What you need to know

• Asking prices are not sale prices. Realestate.co.nz says asking prices usually sit above what homes sell for.
• The Real Estate Institute put Auckland's median sale price at $950,000 in August.
• Nationally, 34,001 properties were on the market in September, up 10.7% on a year earlier.

What happens next

Realestate.co.nz's next monthly figures will show whether Auckland's average asking price stays below $1 million as stock keeps building.

Still to be confirmed

• Whether the fall in asking prices will lead to lower actual sale prices is not yet clear.
• How much the election is influencing when sellers list their homes is a view from realestate.co.nz, not a confirmed cause.