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


Auckland House Sales Slump 37% in September

Auckland House Sales Slump 37% in September as Election Weighs on Flat Market: Barfoot

By Paul McBeth

Oct. 4 (BusinessDesk) - The volume of Auckland house sales slumped by more than a third in September from a year earlier as an already flat market was weighed down further by the general election.

The number of sales fell to 658 in September from 1,051, the lowest level for the opening month of spring in seven years, Barfoot & Thompson said in a statement. New listings fell 7.9 percent to 1,414, while stock available at the end of the month was 25 percent higher than a year earlier at 3,829.

"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," managing director Peter Thompson said. "Factors such as high population growth, stable mortgage interest rates and a shortage of supply remain."

New Zealand's property market has been slowing through the course of this year as Reserve Bank restrictions on more highly-leveraged mortgage lending and tighter credit criteria being demanded by banks made it more difficult for borrowers, even as low interest rates made it easier to service much larger debts. Quotable Value figures today showed property value appreciation slowed even further in September, led by a levelling out in Auckland where average values are still north of $1 million.

During the housing market's last downturn in 2009 and 2010, sale prices remained largely static, with the slowdown showing up in smaller sales volumes, longer days to sell, and a build-up in available listings. In September 2010, Barfoot had 689 sales and 5,572 houses on its books at the end of the month.

Barfoot today said sales prices had remained static and that they were unlikely to fall significantly due to sellers believing the underlying fundamentals pushing up prices over the past two years hadn't changed. The median sale price of $860,000 in September was 1.2 percent higher than the same month a year earlier, and up 4.9 percent from August, while the average price of $928,213 was 1 percent higher than both a month earlier and September 2016.

"Sellers were prepared to accept prices at close to what have prevailed for the past six months, but have been declining low offers," Thompson said.

The city's biggest realtor anticipates the usual spring pick-up in prices and sales will probably return in early November once a government is formed and buyers and sellers have a better idea about what policies might impact the market.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>