Modest Price Drop Boosts Auckland Property Sales Numbers
The Auckland residential property market underwent a modest but definite shift in July with property sales prices falling and sales numbers rising.
“The modest fall in both average and median prices in the month was enough to unlock sales numbers, with July sales being their highest in the month of July for three years,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“For the previous three months sales numbers were more subdued with prices tending to edge higher.
“In July the fall in prices compared to the average for the previous three months was relatively small in the case of the average price at $919,648 (down $12,000) but more significant in the case of the median price at $800,500 (down $41,000).
“The fall in prices has contributed to a greater number of sales conditional on buyers selling their own property going ahead.
“In July it resulted in sales numbers at 879 being 11.8 percent ahead of those in June, 16 percent ahead of the average for the previous three months and 5.9 percent ahead of those for July last year.
“It is a positive sign that the Auckland market is getting through the traditional winter downturn in better shape that in the previous two years.
“Another positive sign was new listings for the month at 1,154 being well ahead of those for June (up 14 percent) and those for July last year (up 9.2 percent).
“A feature of July’s sales was the relatively high number of sales of property in the under $500,000 price category, which at 15.9 percent of sales was significantly higher than we normally see.
“It points to the higher number of apartment and terrace housing sales showing in the monthly statistics, and the growing acceptance in Auckland of this form of housing.
“It can be anticipated that this growing sector of the market will continue to impact on the average and median sales prices being achieved.
“Sales of property in the $1 million plus and $2 million plus sales category combined made up 28 percent of all sales in the month. These price categories regularly make up a third of all sales.
“At month end we had 3,864 properties on our books, the lowest number for sale in the past 17 months.
“With buyers re-entering the market, now represents a good time for those considering to sell their property to list.
“The rural and lifestyle markets experienced a second consecutive positive month, particularly to the south of Auckland.
“Sales of rural and lifestyle property in the under $1.5 million price category were solid, with a number of properties that had been on the market for some months changing hands. In this area it has led to a shortage of available listings.
“To the north of Auckland while rural and lifestyle sales were positive sales activity was being restricted with listings not matching buyer interest.”
Barfoot & Thompson knows Auckland best. It is the city’s leading real estate company, selling around one in three Auckland residential homes, significantly ahead of all other competitor brands.