The Auckland property market stirred itself from a two-month hibernation in November with sales numbers for the month increasing by close to 20 percent and average and median sales prices remaining firm.
“They were small signs, but it indicates the Auckland market is holding firm and buyers are returning,” said Kiri Barfoot, a Director of Barfoot & Thompson.
“There are certainly no signs of a general market retreat.
“At 757 sales in the month we had the highest number of monthly sales since August and November’s sales were 9.7 percent higher than the average sales number for the previous three months.
“Both the average price at $913,244, and the median price at $830,000, were right in line with what we have been achieving over the previous three months.
“While those numbers are down on their equivalents in November last year, that was a time when the market was close to reaching its peak.
“This November’s trading is a sure sign that at current values buyers are returning to the market.
“New listings are continuing to reach the market, and during the month we listed 1955 properties, a third higher than the average over the previous three months.
“It brought the number of properties at month end to 4838, the highest number we have had in more than five years.
“There is now a quarter more properties on the market than at the same time last year.
“At the high end of the market, buyers are still seeing value in property at current prices with a significant rebound in the number of properties sold for in excess of $1 million. In the month we sold 55 properties for in excess of $2 million and a further 262 for in excess of $1 million, the highest number of high end property sales since May.
“Even during the height of activity in 2016, sales of 55 properties for in excess of $2 million would have been regarded as an excellent month.
“A similar pattern of activity was evident in the lifestyle and rural sectors with sound sales numbers in Mangawhai and Wellsford in the north and in Pukekohe and Papakura to the south. Properties valued in excess of $2 million attracted strong interest.
“We sold 62 rural and lifestyle properties in November, the highest in a month since March and during the month at a Pukekohe lifestyle property auction 50 percent of the properties sold on an unconditional basis.
“Interest from local developers and land bankers is returning, but there is still a degree of hesitancy as they await a clearer understanding of future government policy."