Following a three month cooling, the arrival of spring has seen a rebound in the rate at which Auckland house prices increased in September.
“The average sales price in September at $836,275 jumped 1.9 percent in one month and the median sales price at $790,000 increased by 4.6 percent, with both setting new price records,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“September was extremely active with sales at 1358, which were up 3.4 percent on those for August and up 41.6 percent on those for September last year.
“Nearly a third of all those homes (428) were for in excess of $1 million, which is the highest number of $1 million plus homes we have sold in a month.
“You have to go back to June this year to see a similar lift in values in one month to that we experienced in September.
“In part the price surge may be down to buyers getting in ahead of the new regulations around equity ratios for investors, which came into force in October, but without doubt an element of the traditional lift that comes with spring was there.
“New listings at 1940 were the highest in a September for 12 years, and created a reasonable level of choice.
“Whether September’s prices have set a trend for the remainder of the year has yet to be seen.
“New regulations for international buyers are due to come into force in November and these have coincided with a tightening of requirements around the export of money out of China.
“In the last week of the month there was a fall off in sales made under the hammer at auctions, and there was less pressure on buyers to make immediate decisions.
“This end of the month development carries with it a note of caution that September’s prices may not prove to be the start of a new round of increases, and that buyer’s may not be prepared to overstretch themselves to secure a property.
“The future direction of prices still remains at the crossroads.
“At month end, the number of properties on the company’s books was 3148, the highest number for the past 5 months.
“During the month we sold 161 homes or 11.9 percent of all homes for under $500,000. This is significantly lower than the 14.3 percent of sales in August or the 31.8 percent of sales recorded in September last year’.