The average house price in New Zealand has continued to rise as the total number of homes available for sale has fallen.
In July, houses for sale dropped by 11 percent on the same month last year, according to Realestate.co.nz, while the average national asking price increased by 3.9 percent to $756,250.
“Despite speculation around prices dropping due to Covid-19, the market seems to be performing well,” says the real estate listings website’s spokeswoman, Vanessa Taylor.
“It’s been three months since the country moved to Alert Level 3 and, while we can never say never, we simply haven’t seen the drop that many were expecting.”
In April, the Reserve Bank removed the loan-to-value ratio (LVR) restrictions in response to the economic downturn caused by Covid-19. The LVR restrictions limited the amount of lending available to low-deposit buyers.
However, Taylor explains that the national housing shortage still remains an issue, possibly exacerbated by Kiwis returning home from overseas.
Asking prices were nearly all up in the North Island regions last month, with a 13-year all time high in Northland, Auckland, Hawkes Bay, Coromandel and Manuatu/Wanganui.
The average asking price for a house in Auckland was $989,602, in Wellington was $735,324 and in Christchurch was $537,800.
