Auckland Residential Housing Market Sustains Growth Into Fifth Month

Press Release – Barfoot and Thompson

Auckland home buyers are not being put off by record sales prices and in November the average and median prices paid established new records while sales during the month were the highest they have been in a month for more than five years.

“Buyers are not being deterred by current prices or concerns about whether residential property will hold its value in the months ahead,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Buyers are convinced that the time is right to buy, and if they have the support of their bank, and can meet the repayments, then they are prepared to commit.

“The Auckland market has now experienced five months of sustained month-on-month growth in terms of prices and sales numbers.

“The market is as busy now as it was at the height of the last major buying cycle between 2013 and 2016.

“During November we sold 1551 homes at an average price of $1,055,971 and at a median price of $974,000.

“Only once before – in March 2015 – have we sold 1500 homes in a calendar month.

“The average price at which homes are now selling, compared to June’s average when the market found new momentum, is 10.8 percent. The increase in the median price is 7 percent.

“At the start of the year $1 million homes represented about a third of our total sales but for the last two months they have represented just under half of all sales.

“And for the second consecutive month we sold more than 100 homes for more than $2 million.

“The prices being achieved are bringing more vendors into the market and in November we listed 2335 new properties, the highest in a month ever.

“The high number of new listings has greatly increased buyer choice and at month end we had 4043 properties on our books. This is the highest number of listings we have had at month end for 17 months, and this is likely to see the current strong levels of sales being maintained through to the Christmas/New Year break.

“Sales of rural and lifestyle properties continue to track the sales pattern in urban areas, with auctions creating a competitive sales environment. High sales numbers have led to a shortage of listings, which in turn is ensuring competitive pricing.

“During the month we sold two large tracts of land zoned for residential development in the Pukekohe area.”

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