You might have heard that property prices double every 10 years. But is it true?
Well, data from realestate.co.nz found that more than half of New Zealand’s 76 districts experienced a doubling in their average asking price over the decade to 2022.
The biggest increases occurred in:
- Kawerau = up 293.9% to $494,172.
- Horowhenua = up 169.2% to $701,884.
- Kaipara (Northland) = up 165.5% to $1,075,074.
- Rangitikei = up 162.6% to $580,463.
- South Wairarapa = up 162.0% to $1,033,348.
The data indicate that property values rise over the long-term, according to realestate.co.nz CEO Sarah Wood.
“Across the board, annual average asking prices have increased in all parts of New Zealand in the last decade, which I think is important to remember amid the fall we have seen to prices over the last 12 months,” she said.
“Peaks and troughs are normal. But this data tells us that we are unlikely to see average asking prices trend downwards in the long run, so those who are seeing a dip in their area shouldn’t lose hope.”
Why now might be a great time to buy
Nobody can say what will happen to property prices over the short-term or the long-term.
However, as Ms Wood said, history suggests that values tend to increase significantly over the long-term.
If history does indeed repeat, this might be a good time to buy, given that buyer competition is subdued right now and prices are much lower than they were a year ago.
If you’d like to take advantage of the current market dynamics, I can help you finance your purchase.