The Auckland residential market burst into activity in February, but not at the expense of stable prices, Barfoot & Thompson managing director Peter Thompson said of the agency’s business last month.
The agency achieved its best sales tally in 5 years – 804, up 70% from a year earlier, but Mr Thompson said prices were in line with where the market had been for the last few years.
“Both the average & median prices declined markedly from the level they have been at over the past 3 months, but were in line with those being paid at this time last year.
“Stable prices were a major factor in why so many sales were made in the month. The prices buyers were prepared to pay met vendors’ expectations, and our clearance rate of properties at auction, and by direct negotiation, were close to the numbers we were selling at the height of the 1990s property cycle.
“Another factor contributing to the average & median prices remaining stable was the growing influence of apartment sales.”
Mr Thompson said home sales for less than $500,000, predominantly apartments, jumped from 4.7% of the total in January to 16% in February.
“There is every indication that the excellent start the market has made to the year will flow into March, which traditionally is the best sales month in the first half of the year.
“There are no early signs that the spread of the coronavirus is having an impact on property sales but this is expected, as property sales tend to take place over a 30- to 60-day period, and any signs that the virus might have on market activity is unlikely to appear before April’s trading results.”
The agency had 50% more residential properties listed for sale in February than the average over the last 3 months, but stock available at the end of February rose only slightly above the average for the last 3 months, and was 21% below the stock level of a year ago.
Attribution: Agency release.