Barfoot & Thompson managing director Peter Thompson said on Wednesday Auckland residential property prices remained “rock solid” in September, even though sale numbers fell to levels not seen in the month of September for 7 years.
“Sellers were prepared to accept prices at close to what have prevailed for the past 6 months, but have been declining low offers,” he said.
“The over-riding sentiment of sellers was that the fundamentals that have driven the market for the past 2 years have not changed, and that prices are not likely to fall significantly. There are a significant number of buyers actively searching, and those that are realistic & prepared to meet the market are making a purchase.
“Factors such as high population growth, stable mortgage interest rates & a shortage of supply remain.
“The general election coming in the middle of the sales period added uncertainty to a market that has been flat since April, and did have an impact on sales numbers. In September, it resulted in sales numbers being down 15.3% on the previous month.
“However, the average sales price increased by 1% over that for August to $928,213 and the median price increased by 4.9% to $860,000.
“A contributing factor to prices edging higher in September was that two-thirds of all sales were of properties for in excess of $750,000, with 38.6% reaching a sale price in excess of $1 million.
“Properties in the higher price brackets tend to be less affected by uncertainty about potential future price movements.
“September’s average & median prices are marginally higher than what they were in September 2016.
“With the general election out of the way and a future government likely to be confirmed by mid-October, the normal spring lift in new listings for sales pre-Christmas and greater sales activity is likely to return to the market by early November.”
Mr Thompson said new listings for September were solid at 1414, up 12.2% on August, and at month end total listings were 3829, down 4.1% from the end of August.
“Rural & lifestyle property sales mirrored those of residential properties, with sales numbers being lower & prices stable.”
Attribution: Agency release.