For the third consecutive month the Auckland residential property market registered limited change in activity with May sales numbers remaining subdued and prices not moving.
“Within the context of the onset of winter and where the market is at, May activity was typical of what we have seen over the past 18 months,” said Peter Thompson, Managing Director of Barfoot & Thompson. Auckland is now well into a new, more traditional market cycle. It’s one of very stable prices and sales numbers that have settled below the five-year peak sales years of 2012 to 2016. The market remains active because buyers are there and there is a good number of properties for sale. The prices that properties are changing hands at is consistent with those for last year and only marginally below those for 2016. Sales numbers for the month at 821 showed a good increase on April’s 667 but were down significantly on last May’s 1027. The average sales price for the month was $928,992. The average price in May is within $3000 (or 0.3 percent) of the average price for previous three months. The median price for the month at $850,000 was the highest it has been for five months and 3.4 percent higher than the average for the previous three months, but the increase may be no more than a monthly variation. What is clear is that the Auckland market has come through the concerns created by the now abandoned capital gains tax and sales settling at current levels in a robust fashion. While there are no signs of a price retreat, nor is there signs of prices rising. It is a situation likely to remain until spring. New listings for the month at 1186 were in line for those last month and at 4319 the number of properties on our books at month end are marginally down on those for April and those for May last year. Sales were made across all price segments in the month with more than a third of sales achieving a price of $1 million or more. Sales for under $500,000 represented 9.4 percent of sales. Auctions remain the most efficient sales method. Although fewer sales are now being made under the hammer, this sales method creates higher profile for properties, and often leads to a negotiated sale, or creates an opportunity for those who are not in a position to make a non conditional offer to become involved. The rural and lifestyle market in May experienced much the same trading conditions as the urban market, and we sold 48 properties in the month, our highest number in a month this year.“While there remains a solid number of potential buyers in the rural market looking both north and south of metropolitan Auckland, this market remains price sensitive.”
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.