The nearest thing to a trend in house sales is that the under-$500,000 price bracket remains a few points below 50%, but even that’s wobbled a couple of times over the last year.
The Real Estate Institute’s statistics showed the median sale price in August up around the country compared to both August last year & July this year, but down in Auckland compared to a year ago.
Sales were down compared to a year ago but up compared to July.
The bottom price bracket used to be under $400,000 and its share of the market was declining rapidly. But the bracket marker was lifted to $500,000 early this year and, although it’s still falling, it’s in the mid-40% region.
The institute view
Real Institute chief executive Bindi Norwell said: “Banks’ lending criteria & loan:value ratios (LVRs) are still impacting first-homebuyers & investors. If you looked at the number of properties sold, without looking at the bigger picture, one might assume that the market was showing significant signs of slowing. However, as prices are holding up, and even increasing, then it suggests that people may be holding off from selling their property unless it’s absolutely necessary.”
Median house price this August compared to July 2017 & August 2016 (in brackets):
National: $530,000 ($518,000, $490,000), up 2.3% in month, 8.2% in year
National excluding Auckland: $428,000 ($417,500, $386,000), up 2.5% in month, 10.9% in year
Auckland: $840,000 ($830,000, $850,000), up 1.2% in month, down 1.2% in year
Sales by auction nationally fell 55% from a year ago to 799, representing 14% of all sales. In Auckland, auction sales fell 61% to 418, representing 23% of all sales.
Sales nationally fell from a year ago in all price brackets, but were up from July in all but the $500-750,000 bracket. The breakdown of sales in price brackets and their share of the market in August 2017 & August 2016:
$1 million-plus: 787 (964), down 18%; 13.3% (13.1%) of all sales
$750-999,999: 790 (941), down 16%; 13.4% (12.8%) of all sales
$500-749,999: 1614 (1717), down 6%; 27.4% (23.3%) of all sales
Under $500,000: 2705 (3746), down 38%; 45.9% (50.8%) of all sales
All sales: 5896 (7368), down 20%.
In last month’s item on the housing figures I managed to present you with an Auckland sales graph twice, omitting the price brackets. Here’s that breakdown of sales in price brackets and their share of the market in July 2017 & July 2016:
$1 million-plus: 708 (1002), 12.9% (13.8%)
$750,000-999,999: 674 (925), 12.3% (12.8%)
$500,000-749,999: 1478 (1741), 27.0% (24.0%)
Under $500,000: 2615 (3583), 47.8% (49.4%)
All properties sold: 5475 (7251).
The institute’s house price index, which measures the changing value of property in the market, showed a 0.5% increase nationally. Excluding Auckland, it rose 7.0%. The Auckland index fell 2.9%.
Housing stock available:
Nationally: 21,555 (21,462), down 0.4%
National excluding Auckland: 15,389 (13,825), down 10.2%
Auckland: 7731 (6073), up 27.3%
The Auckland view
On the Auckland market Ms Norwell said: “The Auckland market is stable but improving, with house prices in Auckland increasing $10,000 from July, with much of this activity being driven by school zones, age of homes & location. LVRs & the banks are still impacting the market & first-homebuyers, leading to a reduction in investors in the market. Similarly, clients are still cautious as the political parties continue to announce their policies, but post-election the market is expected to lift.
“Compared to August 2016, the median price decreased $10,000 (-1%). However, most of the territorial authorities [on the old boundaries] within the region saw increases in their median price over the same time period, with Franklin District leading the way with a 9% increase. It was Manukau City & Waitakere City only that saw decreases in their median price since August 2016, the latter most significant at -5%.
“Compared to July 2017, the overall region median increased 1%. The performance of the territorial authorities was largely positive, with only Manukau City experiencing a decrease (-3%).
“Sales volume in the Auckland region increased 7% compared to July, with large boosts in sales numbers in Manukau & Waitakere (24% & 15% respectively). Compared to August 2016, sales fell 22% with volume decreasing in all territorial authorities, most notably in Rodney (-30%), North Shore (-28%) & Auckland City (-26%).”
Attribution: Institute release.