Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Auckland House Prices Rise While Sales Decline


November 3, 2016
October sales data statement

Auckland House Prices Rise While Sales Numbers Show Steep Decline

Buyers in the Auckland property market have become more selective, but for the right property are prepared to meet the auction reserve or asking price.

“In October the rare situation developed where the average sales price set yet another record while sales numbers fell to their lowest in an October for five years and available property for sale reached its highest number at month-end in three years,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“It is a combination of factors that hasn’t come together for many years.

“The last time sales numbers fell this low in an October was in 2011 when the market was still not fully recovered from the 2007 Global Financial Crisis.

“It is yet another sign the Auckland market is losing its forward momentum.

“In October high end buyers were not put off by prices if the property represented value for money, and 39.2 percent of the homes sold were for in excess of $1 million.

“This is the first time this year properties selling for more than $1 million have represented close to 40 percent of sales. Normally the number is in the mid-30s.

“This high end activity lifted the average sales price to $943,801, an increase of 2.6 percent on that for September, and 12.3 percent on that for October last year.

“Sales numbers in the month fell to 778, more than a quarter lower than those in September and also a quarter lower than the average for the past three months.

“Where buyer resistance to prices has been felt most is in the under $1 million price category. Greater choice has created an environment where buyers feel less pressure to pay the asking price.

“This is reflected in the median sales price for the month which increased by 1.8 percent in the month to $865,000. This compares with the average price increase for the month of 2.6 percent.

“The average median price increase over the past 12 months now stands at 10.9 percent, compared with 17.4 percent for the 2015 calendar year and 11.1 percent for 2014.

“The new LVRs investors must meet has had a significant impact on sales in the under $500,000 price category. In spite of there being a reasonable selection of properties available only 40 homes, or 5.1 percent of all properties, sold for under $500,000.

“With the normal spring lift in sales activity failing to arrive this year, the relationship between buyers and sellers has moved into a more balanced position.

“At month end we had 3,711 properties listed, 21.3 percent higher than at the end of September.”

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO:

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>