Residential market gets lift, but Barfoots chief adds price caution

Barfoot & Thompson managing director Peter Thompson said yesterday residential sales, prices & listings all rose in October.

“In comparison with where the market has been for the past 9 months, October trading was extremely active,” he said. “Spring arrived, and the market came alive.

“The average sales price for the month, at $937,277, was the highest this year and up 1.5% on the average for the previous 3 months.

“The same trend is there with the median price, which at $860,000 for the month was also the highest it has been this year (along with that for March) and 3.9% higher than the average for the previous 3 months.

“In part, the increase can be attributed to the traditional upturn that comes with spring, but there was also a newfound confidence that prices were not going to retreat.”

Mr Thompson said the 884 sales for the month were the highest for October in 3 years, available property for sale the highest in 6 years, and new listings the highest for 19 months.

11% of sales were for under $500,000, 32% between $1-2 million, 5% over $2 million.

Despite all that extra life in the market, Mr Thompson cautioned: “The revival of the Auckland housing market is not a signal that the market is ready for another burst of rising prices. What it does signal is that residential property is set for strong trading through to Christmas.

“Contrastingly, the rural & lifestyle market experienced a quiet month’s trading. Prices remained steady with strong listing numbers, particularly in Orewa & Pukekohe.”

Barfoots’ October residential statistics:

Attribution: Agency release.

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