Barfoot & Thompson managing director Peter Thompson reckons more listings are needed to revive lost momentum in the Auckland housing market.
“Trading in the 3 months of winter & in August followed the same steady pattern of last year – a pattern of modest sales numbers, prices at near record levels and new vendors hesitant to enter the market,” he said yesterday.
“In August we sold 746 properties, down 4.6% on those for July, but not too far out of line with our trading numbers for August over the past 3 years. The prices paid for those properties were excellent, with the average price being $930,090 and the median price $830,000. Both the average price & median price were higher than the averages achieved for the previous 3 months.”
Mr Thompson said auction remained the most popular sales method: “While sales under the hammer at auctions are down on what they were 2-3 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 1052, the lowest in an August for more than a decade, and at month end we had 3818 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 2 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.
Barfoots’ sales – August, July, previous 3 months average, August 2018, with change in brackets:
Average sale price: $930,090, $919, 648 (+1.1%), $929,528 (unchanged), $928, 266 (+0.2%)
Median sale price: $830,000, $800,500 (+3.7%), $832,000 (-0.2%), $840,000 (-1.2%)
Sales: 746, 879 (-15.1%), 829 (-10%), 795 (-6.2%)
New listings: 1052, 1154 (-8.8%), 1117 (-5.8%), 1331 (-21%)
Month-end available stock: 3818, 3864 (-1.2%), 4089 (-6.6%), 4022 (-5.1%).
Attribution: Agency release.