The Auckland residential property market leapt into life in May with monthly sales numbers at 1027 lifting by more than 40 percent on those for the previous month and for only the third time in 20 months sales numbers in a month exceeding 1000.
“The hand brake that was holding back buyers eased in May, and it led to high sales volumes across all price bands,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“It is the second consecutive month that sales numbers have exceeded their equivalents in 2017 and a further sign that the market is coming out of its 12-month hibernation.
“The prices paid in May eased, with the average price at $918,465 falling to its lowest level in five months, although this price was less than one percent lower than the average price for the previous three months.
“The median price at $820,000 was at its lowest for three months, and down 2 percent on the average for the previous three months.
“At current levels buyers are demonstrating confidence that prices have likely bottomed and vendors are recognising the market is not going to rebound to levels higher than those of 12 to 18 months ago.
“As we head into the winter months prices are now on a par with what they were this time 12 months ago, and we can expect price stability for the remaining winter months.
“New listings for the month were excellent at 1455 and up by 7.1 percent on those for April.
“The high sales led to a fall in available properties at month end, with the number falling to 4568, down 2.4 percent on those for the month previously but still far ahead of those during the peak price period experienced between 2013 and 2016.
“Sales in the under $500,000 price band were particularly strong in May, with the 157 sales representing 15.5 percent of all May sales and was more than double the number sold in April.
“Sales in the top $2 million plus and $1 million plus price bands were also strong, with the sales for these properties accounting for a third of all sales.
“In the rural and lifestyle category high end properties continued to be in demand to the north and south of Auckland, with sales at auction, or by negotiation shortly after the auction, remaining the most effective sales method.
“Properties close to Albany and Pukekohe attracted strong buyer interest in April and this continued into May.
“Rural sales numbers for May were the second highest for 2018.”