Strong Performance From Auckland Housing Market At Year End
The Auckland housing market is ending the calendar year strongly with sales numbers in November their highest in six months, and with the average price at its highest in 12 months.
“Trading activity increased strongly in October, and November’s sales have built on that momentum,” said Kiri Barfoot, Director, Barfoot & Thompson.
“The average sales price for the month at $937,792 is the highest it has been since December 2017 and is $24,000 higher than it was in November last year.
“Combined with sales for the month of 941, the highest they have been in a month since May, and you have a balanced and stable housing market.
“Buyers and sellers are putting speculation around future trading conditions aside and acting with confidence at current market prices.
“The median price for the month at $850,750 is down 1.1 percent on October’s median price but is up nearly 1 percent on the average median price for the past three months and is 2.5 percent higher than it was at this time last year.
“New listings for the month at 1606 were down on what is traditionally one of the stronger months for listing but were still excellent considering the record setting number of listings in October.
“At month end we had 4853 properties on our books, right in line with those at the end of October and at the end of November last year.
“With stable prices and a solid number of properties to choose from we anticipate trading in the run in to Christmas will be strong.
“During November 11 percent of all sales were of properties that sold for under $500,000, highlighting the growing attraction of the apartments and town houses now reaching the market. At the end of last year sales in this price bracket was rapidly diminishing.
“This emphasises the growing opportunities for first time and modest income families to enter the housing market.
“With the upcoming relaxation by the Reserve Bank on the level of mortgage deposit rates and the trading banks continuing to offer record low mortgage lending rates, the opportunities for first time buyers to enter the market have rarely been better in the past decade.
“At the other end of the market properties in the $1 million plus bracket continued to sell well, with them representing just over a third of all property sales in the month.
“A little over 6 percent of all sales in the month fetched more than $2 million.
“As in October, November lifestyle and rural sales did not match the uplift in activity seen in the residential market.
“Sales and prices were steady but without matching the closing rate of those being achieved in the residential market.
“Lifestyle property in the Pukekohe region priced in the $1milion to $1.5 million bracket was the one bright spot in this market.”