1 00:00:00,120 --> 00:00:00,480 Speaker 1: Move over. 2 00:00:00,520 --> 00:00:03,920 Speaker 2: Auckland Bay have Plenty officially the most expensive place in 3 00:00:03,960 --> 00:00:06,800 Speaker 2: the country to buy a house. Today, new trademing data 4 00:00:06,840 --> 00:00:09,479 Speaker 2: shows Bay Plenty has the highest average asking price in 5 00:00:09,520 --> 00:00:12,640 Speaker 2: the country nine hundred and sixty three thousand dollars. That's 6 00:00:12,640 --> 00:00:15,760 Speaker 2: eleven k more than Auckland. Auckland, by the way, has 7 00:00:15,760 --> 00:00:19,640 Speaker 2: had that title for basically a decade. Ed mckknight's resident 8 00:00:19,680 --> 00:00:22,400 Speaker 2: economist at Oprah's Partners joins me, tonight ed, good evening. 9 00:00:23,120 --> 00:00:25,200 Speaker 1: Great to be here, Ryan. So is this Bay. 10 00:00:25,079 --> 00:00:28,240 Speaker 2: Plenty getting more expensive or is this Auckland price is 11 00:00:28,240 --> 00:00:29,360 Speaker 2: still dropping or both? 12 00:00:30,200 --> 00:00:32,360 Speaker 1: Well, there's a couple of things going on. First of all, 13 00:00:32,360 --> 00:00:34,920 Speaker 1: we've got to be clear that we aren't talking about 14 00:00:34,960 --> 00:00:37,520 Speaker 1: asking prices here, and of course you can ask however 15 00:00:37,600 --> 00:00:39,599 Speaker 1: much you want for your house. It doesn't mean you're 16 00:00:39,640 --> 00:00:42,360 Speaker 1: necessarily going to get it. But what we are seeing 17 00:00:42,360 --> 00:00:44,760 Speaker 1: at the moment is, right now there are quite a 18 00:00:44,800 --> 00:00:48,400 Speaker 1: lot of reasonably expensive properties for sale over there in 19 00:00:48,479 --> 00:00:51,040 Speaker 1: the Bay of Plenty. Up here in Auckland, we are 20 00:00:51,080 --> 00:00:53,360 Speaker 1: seeing quite a few cheaper properties for sale. We have 21 00:00:53,440 --> 00:00:56,800 Speaker 1: had our townhouse boom, and so because Auckland's property prices 22 00:00:56,840 --> 00:00:59,680 Speaker 1: have been very expensive in the past. The market has 23 00:00:59,720 --> 00:01:02,480 Speaker 1: rep bonded. We've now got some cheaper properties on the market. 24 00:01:02,520 --> 00:01:05,280 Speaker 1: That's why you see that difference in asking price. What 25 00:01:05,360 --> 00:01:07,760 Speaker 1: I will just say before people get their hopes up 26 00:01:07,800 --> 00:01:10,640 Speaker 1: too much, there is still quite a large difference between 27 00:01:10,720 --> 00:01:13,160 Speaker 1: Auckland and the Bay of Plenty when it comes to 28 00:01:13,240 --> 00:01:16,840 Speaker 1: sale prices. That gap has narrowed over the last ten years, 29 00:01:16,880 --> 00:01:20,119 Speaker 1: but the median sale price of a house in Auckland 30 00:01:20,160 --> 00:01:22,399 Speaker 1: is still about one hundred and fifty grand more than 31 00:01:22,440 --> 00:01:23,440 Speaker 1: over in the Bay of Plenty. 32 00:01:23,720 --> 00:01:28,200 Speaker 2: So the vendors and Bay Plenty just greedy, not necessarily. 33 00:01:28,440 --> 00:01:31,000 Speaker 1: It might be that it just so happens that right 34 00:01:31,040 --> 00:01:33,400 Speaker 1: now and you see this. Sometimes it just so happens 35 00:01:33,400 --> 00:01:36,120 Speaker 1: that there are larger houses for sale at the moment, 36 00:01:36,120 --> 00:01:38,920 Speaker 1: whereas you might have smaller ones over here in Auckland, 37 00:01:39,000 --> 00:01:41,200 Speaker 1: and you do need to pay attention or just be 38 00:01:41,240 --> 00:01:44,520 Speaker 1: a bit careful with asking prices. For instance, over the 39 00:01:44,600 --> 00:01:48,240 Speaker 1: last twelve months in Gisbon, the average asking price is 40 00:01:48,280 --> 00:01:51,680 Speaker 1: down thirty four percent year on year. Now does that 41 00:01:51,800 --> 00:01:54,639 Speaker 1: mean that Gisbon house prices have fallen off a cliff 42 00:01:54,640 --> 00:01:57,360 Speaker 1: and everybody's house is worth a third less? No, it 43 00:01:57,520 --> 00:02:01,600 Speaker 1: just happens that the makeup of houses has changed. The 44 00:02:01,640 --> 00:02:04,240 Speaker 1: houses that sold twelve months ago aren't the same as 45 00:02:04,280 --> 00:02:06,639 Speaker 1: the houses that are selling this year. It just so happens, 46 00:02:06,640 --> 00:02:07,720 Speaker 1: thus smaller or cheaper. 47 00:02:07,880 --> 00:02:10,079 Speaker 2: Also, on trade me and other sites like it, they 48 00:02:10,120 --> 00:02:13,680 Speaker 2: don't necessarily list and asking price, do they, So it's 49 00:02:13,800 --> 00:02:16,360 Speaker 2: it only will presumably would only take into account those 50 00:02:16,400 --> 00:02:17,080 Speaker 2: that give one. 51 00:02:18,120 --> 00:02:20,000 Speaker 1: Oh no. What happens in the back end when a 52 00:02:20,040 --> 00:02:24,359 Speaker 1: real estate agent goes in and pops that property online 53 00:02:24,639 --> 00:02:28,000 Speaker 1: is they will put an indication of the price they 54 00:02:28,040 --> 00:02:30,680 Speaker 1: are seeking. Because even if the property goes up for 55 00:02:30,760 --> 00:02:34,520 Speaker 1: sale at auction or deadline sale, people still need to 56 00:02:34,520 --> 00:02:36,520 Speaker 1: be able to filter and say, okay, I'm looking for 57 00:02:36,560 --> 00:02:39,679 Speaker 1: a property between six and seven hundred thousand dollars. And 58 00:02:39,760 --> 00:02:43,480 Speaker 1: even if the listing pops up and says auction, the 59 00:02:43,480 --> 00:02:45,880 Speaker 1: real estate agent still had to say, this is the 60 00:02:46,200 --> 00:02:47,959 Speaker 1: ballpark what they're aiming for. 61 00:02:47,960 --> 00:02:51,360 Speaker 2: Right, So they would give an actual number, a ballpark number, 62 00:02:51,480 --> 00:02:52,600 Speaker 2: or just a range. 63 00:02:53,280 --> 00:02:56,079 Speaker 1: Yeah, that's right. And you might remember about a year 64 00:02:56,200 --> 00:02:58,320 Speaker 1: or so ago there was a website that popped up. 65 00:02:58,360 --> 00:03:00,480 Speaker 1: A couple of young kids who put one line that 66 00:03:00,680 --> 00:03:03,000 Speaker 1: managed to pull out from trade me, what the real 67 00:03:03,120 --> 00:03:06,600 Speaker 1: estate agent had actually put into the website. Somehow they'd 68 00:03:06,639 --> 00:03:08,400 Speaker 1: got into the back end and looked at the code 69 00:03:08,440 --> 00:03:10,600 Speaker 1: or something along those lines, and they got shut down 70 00:03:10,639 --> 00:03:13,160 Speaker 1: pretty quickly because real estate agents weren't happy about that. 71 00:03:13,440 --> 00:03:16,079 Speaker 2: No, they don't like us knowing the truth to Thank you, 72 00:03:16,280 --> 00:03:18,600 Speaker 2: Ed McKnight, resident economists at ope's partners. 73 00:03:19,200 --> 00:03:22,359 Speaker 1: For more from Hither Duplessy, Allen Drive, listen live to 74 00:03:22,480 --> 00:03:25,520 Speaker 1: news talks it'd be from four pm weekdays, or follow 75 00:03:25,560 --> 00:03:27,320 Speaker 1: the podcast on iHeartRadio.