Auckland house prices tumble to lowest in three years, but Wellington 'full steam ahead'

Auckland house prices have continued to fall, according to the latest Trade Me property price index, which shows the average asking price drop to the lowest since September 2016.

For sale sign outside of house. Source: 1 NEWS

The average asking price fell 2.2 per cent on last year to $875,450.

Trade Me Property's Aaron Clancy said it was the fourth consecutive month that property prices have dipped in Auckland.

"After years of eye-watering price increases the heat has well and truly been taken out of the Auckland property market," he said.

Statistics show the average asking price in Auckland dropped almost $71,000 from its peak in October 2018.

In Auckland City, the price fell below the $1 million mark for the first time in almost a year to $987,250, dipping 0.4 per cent on last year. The average asking price in North Shore City fell 1.4 per cent to $1,081,300 and Waitakere City dipped 0.7 per cent to $799,250 in July.

"First home buyers in Auckland will be breathing a sigh of relief as it's now a little bit easier to get a foot on the Auckland property ladder," Mr Clancy said.

"With interest rates hitting all-time lows and property prices dipping it's not surprising that we saw a surge of demand for Auckland properties in July, with listing views up 10 per cent on last year."

Meanwhile, in contrast to Auckland, it's good news for homeowners in the capital with the average asking prices in Wellington increasing 9.4 per cent year-on-year to $636,250.

"It’s full steam ahead for the Wellington property market after average asking prices rose $54,750 in just 12 months," Mr Clancy said, adding that while every district saw a solid year-on-year increase, the big movers in Wellington were those just outside the central city.

"Property prices in Porirua and Upper Hutt saw strong double-digit growth in July, with the average asking price jumping 15 and 14.5 per cent respectively."

The rest of the regions were described as "a mixed bag", with the national average remaining stable with an average asking price of $638,500 - only increasing 0.9 per cent.

Christchurch saw a 2.5 per cent increase in the average asking price to $475,650.

But it's Hamilton where demand seems to be hot with the number of views on property for sale jumping 11 per cent on last year.