Barfoot & Thompson managing director Peter Thompson said on Wednesday the fall in sales was finally having an effect on Auckland residential property sale prices.
“In June the average sales price was $913,606, a 3.1% fall on the average price for the previous 3 months, and only 0.6% higher than it was 12 months ago. The median price for the month ($840,000) was down 2.9% on the average median price for the previous 3 months ($865,000) and the same as it was for the same month last year.
“While prices invariably fall as we head into winter, June’s results confirm that prices are definitely falling. Monthly sales numbers have been below the previous year’s numbers for 9 consecutive months, and that is finally having an effect on prices.
“What is positive for the market is that prices are edging down rather than falling rapidly, and at current prices still represent a good outcome for vendors. Sales numbers in June, at 855, were down 3.5% on sales in May and down 26.8% on the number in June last year.
“Sales for the month were their lowest in a June for 7 years. New listings last month, at 1570, were relatively strong and the listing numbers at month end, at 4297, were the same as the previous month.
“That total listings have not risen as sales numbers have fallen is because some vendors have taken their property off the market. Taking property off the market when prices are not rising is a common trait in Auckland and will contribute to prices remaining stable through to September’s election.
“There was a good balance of sales across all price ranges in June, with the sales numbers for property for under $750,000 representing 41% of all sales.
“291 sales, or 34% of all sales, were for property over $1 million and, of these, 39 or 4.6% were for property selling for over $2 million.
“In the Far North, rural sales remain strong, with demand for dairy farms remaining high.
“Family buyers & developers continue to be active in the lifestyle & city fringe markets, with new listings in this rural category being lighter than normal.”
Attribution: Agency release.