Auckland residential property prices remained rock solid in September even though sales numbers fell to levels not seen in the month of September for seven years.
“Sellers were prepared to accept prices at close to what have prevailed for the past six months, but have been declining low offers,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“The over riding sentiment of sellers was that the fundamentals that have driven the market for the past two years have not changed, and that prices are not likely to fall significantly.
“There are a significant number of buyers actively searching, and those that are realistic and prepared to meet the market are making a purchase.
“Factors such as high population growth, stable mortgage interest rates and a shortage of supply remain.
“The general election coming in the middle of the sales period added uncertainty to a market that has been flat since April, and did have an impact on sales numbers.
“In September it resulted in sales numbers being down 15.3 percent in the month.
“However, the average sales price increased by 1 percent over that for August to $928,213 and the median price increased by 4.9 percent to
“A contributing factor to prices edging higher in September was that two thirds of all sales were of properties for in excess of $750,000, with 38.6 percent reaching a sale price of in excess of $1 million.
“Properties in the higher price brackets tend to be less affected by uncertainty about potential future price movements.
“September’s average and median prices are marginally higher than what they were in September 2016.
“With the general election out of the way and a future Government likely to be confirmed by mid October, the normal spring lift in new listings for sale pre Christmas, and greater sales activity is now likely to occur in early November.
“New listings for the month at 1414 were solid, being 12.2 percent higher than in August and at month end total listings were 3829, down 4.1 percent on those at the end of August.
“Rural and lifestyle property sales mirrored those of residential properties, with sales numbers being lower and prices stable.”