August 2019 Housing Market Update

Auckland Property Market Looking For More Listings to Revive Momentum

The Auckland housing market has emerged from the three months of winter in a stable position but it is one which needs more listings to revive lost momentum according to Peter Thompson, Managing Director of Barfoot & Thompson.

“Trading in the three months of winter and in August followed the same steady pattern of last year,” said Mr Thompson.

“A pattern of modest sales numbers, prices at near record levels and new vendors hesitant to enter the market.

“Spring just may be the trigger required to revive the market.

“In August we sold 746 properties, down 15.1 percent on those for July, but not too far out of line with our trading numbers for August over the past two years.

“The prices paid for those properties were excellent, with the average price being $930,090 and the median price being $830,000. The average is higher than that achieved for the previous three months while the median price is right in line with that for the previous three months.

“Auction remains the most popular sales method, and while sales under the hammer at auctions are down on what they were two to three years ago, post auction negotiation are leading to a good level of settlements.  

“What is lacking in the market at present is listings.

“In August new listings were 1,052, the lowest in an August for more than a decade, and at month end we had 3,818 properties on our books, the lowest number in 20 months. 

“Given the near record prices being achieved, and market choice being at its lowest for nearly two years, the incentive to list in the current market has to be strong.

“Sales are being achieved across all price segments of the market, with a third of August sales being for under $750,000, a third between $750,000 and $1 million, and the final third above $1 million.

“The rural and lifestyle markets also experienced low listings during winter, and while sales numbers for lifestyle properties were modest, those sales have led to choice being even further restricted. 

“In the rural sector kiwi fruit properties remain in demand while lots of 20 ha and more, which had attracted limited interest in the first half of the year, are back in favour.”