Property prices have increased for the first time in almost a year following the marketing hitting rock bottom in July, according to a new report.
Trade Me's property price index found the national average asking price was $837,400, up 0.4 percent from July last year.
Average asking prices increased in several regions including Canterbury (up 1 per cent month-on-month), Hawke’s Bay (up 3 per cent), Marlborough (up 3 per cent), Otago (up 5 per cent), Taranaki (up 0.2 per cent), Waikato (up 1 per cent) and West Coast (up 6 per cent).
While this increase is small, it's yet another indicator that the property market reached a turning point in August, Trade Me Property sales director Gavin Lloyd said.
"My advice to those who have been waiting for prices to reach the bottom is to get your ducks in a row, now. If you have the deposit behind you, talk to a local agent and the bank and get ready to make a move."
Meanwhile, Auckland fell 1.1 percent in July to $1,023,000 - the lowest since February 2021 and in Wellington, prices fell 1.8 percent to $795,950.
The index also found properties for sale in New Zealand spent less time on the market in August, with the national average falling to 68 days - six days less than in July.
"In a hot market, like we saw in 2021, properties were selling extremely quickly with the median days onsite dropping to just 28 days," Lloyd said.
"We well and truly hit the bottom of the market in July this year with properties spending 74 days onsite while the national average asking price reached its lowest point since June 2021. However, August was a turning point."
Another sign the market had bounced back was an increase in vendors moving towards less transparent methods of selling, Lloyd said.
In a hot property market, vendors tend to use methods such as actions and tenders, while in a cool market, they are more transparent about the price they want, opting for methods like enquiries over or asking price, he said.
Auctions made up 19 percent of total listings in August, up 10 percent from July. Whereas the total number of properties listed with an asking price fell from 35 percent in July to 26 percent in August.
Trade Me also found an increase in August in the number of properties listed for sale and the number of Kiwis browsing property listings.
"Traditionally between July and August we see the market continue to cool as buyers and sellers retreat over the winter months. This didn’t happen in August, which is surprising and perhaps a sign of things to come for the property market," Lloyd said.
