More buyer activity in the Auckland urban area and a strong trading month in rural & lifestyle properties were features in June, Barfoot & Thompson managing director Peter Thompson said in his monthly market assessment.
“While prices in June remained solid and sales numbers were modest, there were a number of underlying trends that suggest greater activity was building than has been present over the last few months.
“There are more first-time buyers looking, there is a shortage of properties in the $800,000-1 million price segment resulting in competition for properties, vendors are more inclined to meet the market and the banks are showing more interest in lending.
“All are positive signs for vendors who are prepared to price their properties at market.
“The average sales price in June was $939,945, up marginally on that for May and on the average for the previous 3 months.
“The median price at $845,000 was marginally down on the median for last month but well in excess of the median price at June last year.
“Sales of properties in the $1 million & $2 million price segments sold well during the month and represented 34.6% of total sales.
“Only 6.4% of homes sold for under $500,000.
“Sales numbers for the month, at 786, were down on those for May but were influenced by the onset of winter and the shortage of new listings & housing stock.
“New listings for the month, at 1012, were down on those for the previous month and for the same month last year.
“At month end we had 4085 properties on our books, the lowest number for 10 months.
“The rural & lifestyle markets to the north & south of Auckland enjoyed one of their better months this year, with more than $61 million worth of property changing hands.
“This is the highest value of rural & lifestyle sales since November last year and underlines that, when priced at market, properties will sell.
“It is the second consecutive month that the rural & lifestyle market has enjoyed good trading, and this comes on the back of quality listings made earlier in the year.
“The rural & lifestyle market is currently experiencing a decline in buyers in the $2 million-plus price segment, but it has been replaced by strong interest from buyers in the $700,000-1.5 million price category.
“Developers are being far more selective in terms of the opportunities on offer and taking longer in terms of their decisionmaking.”
Attribution: Agency release.