Key price indicators are pointing to Auckland residential house prices starting to rise.
“In August the average sales price at $928, 266 and the median price at $840,000 increased over those for the previous month and were also higher than their equivalents last year,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“Another indicator that prices are edging up is that the average and median prices in August are higher when compared with the average prices paid across May, June and July.
“The increases we are seeing in the market are unlikely to be the forerunner of another seller’s market.
“Rather they are an indication that the bottom of the price cycle is likely to have been reached, confidence in prices is returning and that as spring advances buying pressure will increase.
“Sales numbers in the month at 795 were still modest, and down 4.2 percent on those for July. Traditionally, August is the month when the lowest number of sales are recorded in a year whether prices are rising, declining or neutral.
“Another positive sign that the market is gearing up for a positive spring is new listings hitting 1331, a quarter higher than those for July and 5.6 percent higher than for the same month last year.
“The number of available listings at month end at 4022 are the lowest they have been since September last year, and this low number is also likely to have an effect on prices as spring advances.
“During the month 12.6 percent of all homes sold were for under $500,000. The number of sales in this price category have been climbing in the past six months and are being affected by the higher number of apartment sales now taking place.
“Property in the top price ranges continue to find buyers with nearly a third of all the homes sold in the month being for $1 million or more, and of these, 13 percent sold for more than $2 million.
“The prices being achieved for rural and lifestyle properties in August did not show the same upward lift as residential property. While rural and lifestyle listings remain in short supply appraisals have become more active as vendors consider their options with the coming of spring.”
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.