Average asking prices for homes have dropped to a three-year low

National average asking prices for homes have dropped to a three-year low.

The TradeMe Property Price Index indicates asking prices fell 1.1 percent in July to $824,900, which was the lowest since 2021.

Trade Me property customer director Gavin Lloyd said nearly $150,000 had been shaved off the average house price since the peak.

He said a drop in the official cash rate to 5.25 percent, and forecasts for further interest rate cuts could give would-be buyers more confidence.

"For those that have been thinking about buying a property, now could be the perfect opportunity to capitalise on low house prices and interest rates that are expected to fall further," Lloyd said.

However, other commentators said rising unemployment, set to peak at 5.4 percent in the new year, would be a deterrent for those concerned about job security.