Housing activity in Auckland was “restrained” in April, according to agents, as sales pulled back.
Auckland house sales enjoyed a busy March, but quietened in April, with only a marginal increase in the average price, and sales numbers down significantly.
“April’s prices show that Auckland house prices have pulled back from breaking into new territory,” says Peter Thompson, Managing Director of Barfoot & Thompson.
“The average price for April at $873,599 was up only 0.8 percent on that for March, and 8.6 percent ahead of where it was in April last year.”
The figures mark a significant step down from the 12 per cent monthly year-on-year increased recorded over the past year.
Sales numbers were also down significantly, falling to 944 for the month – 29.6 per cent lower month-on-month and 11.8 per cent lower year-on-year.
“In April we sold the lowest number of homes we have sold in an April in 4 years,” confirms Thompson.
The agency attributes the dip in activity to buyer caution around current pricing, reinforced by the low number of properties on the market, which is restricting choice.
“The median sales price for the month at $820,000 was up 2.8 per cent on that for March, and also up 8.8 percent on that for April last year,” notes Thompson, with fewer homes sold for under $500,000 (7.1 per cent down from 10.9 per cent in March) and house sales above the $1 million mark at their second-highest level in seven months.
Auckland market sends “mixed messages” for 2016
11th January 2016
The Auckland property market is sending “mixed messages” for 2016, as sales fall but prices stay steady.
Agent Barfoot & Thompson sold just 796 units in December 2015, down 19.3 per cent from November 2015. This marks the lowest number of sales in a December for four years and the lowest figure of any month in almost two years.
This is despite the number of new listings available to buy being at their highest level for a December in four years.
The average sales price, however, only slipped 0.8 per cent month-on-month to $869,492, while the median sales price climbed 0.6 per cent to an all-time high of $800,000. Indeed, 2015 marked a series of record peaks for Auckland’s property prices as demand repeatedly outpaced supply. Across the whole year, the average sales price rose 14 per cent from 2014 to $817,096, while the median price rose 17.4 per cent to $755,333.
“Sales data for the final month of the year is sending mixed messages as to where the market will head in 2016,” comments Peter Thompson.
The overall trend may continue in early 2016, though, with supply at the end of December fell 25.2 per cent from the end of November, taking it to a 20-year low.
“With a growing population and the number of new builds failing to keep pace with demand, competition for properties is likely to remain strong in the first quarter of 2016,” predicts Thompson, although notes that it will not be until data from February is available that a clearer indication of the market’s direction for 2016 will be evident.
“What is clear, however, is that with so few properties on the market, now is an excellent time to list,” he adds. “In December, 278 properties sold for in excess of $1 million and a further 202 for in excess of $750,000.”Google+