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

 

Barfoot & Thompson says Auckland housing market moving again


By Jenny Ruth

Aug. 2 (BusinessDesk) - Auckland’s biggest realtor says there was a “modest but definite” shift in the housing market in July when property prices fell but sales numbers rose.

“The modest fall in both average and median prices in the month was enough to unlock sales numbers, with July sales being their highest in the month of July for three years,” says Barfoot & Thompson managing director Peter Thompson.

In the previous three months, sales had been more subdued with prices tending to edge higher.

“In July, the fall in prices compared to the average for the previous three months was relatively small in the case of the average price at $919,648, down $12,000, but more significant in the case of the median price at $800,500, down $41,000,” Thompson says.

Barfoot’s sales totalled 879 for the month, 11.8 percent more than in June, 16 percent ahead of the average for the previous three months, and 5.9 percent ahead of July last year.

“It is a positive sign that the Auckland market is getting through the traditional winter downturn in better shape than in the previous two years,” Thompson says.

The Reserve Bank cut the official cash rate to a record low of 1.5 percent in May and is expected to cut again next week.

The GoodReturns website shows that mortgage rates on the most popular two-year fixed rates started falling in March. For example, ASB Bank’s standard two-year rate has fallen from 4.69 percent to 4.29 percent while its “special” has dropped to 3.79 percent.

“A feature of July’s sales was the relatively high number of sales of property in the under $500,000 price category, which at 15.9 percent of sales was significantly higher than we normally see,” Thompson says.

“It points to the higher number of apartment and terrace housing sales showing in the monthly statistics and the growing acceptance in Auckland of this form of housing.”

He is predicting this segment of the market will continue to impact average and median sales prices.

About 28 percent of Barfoot’s sales in July were of properties worth between $1 million and $2 million, a category which regularly makes up a third of total sales.

Barfoot’s new listings in July at 1,154 were up 14 percent from June, and up 9.2 percent from July last year. At month's end it had 3,864 properties on its books, the lowest number for sale it has had in the past 17 months.

“With buyers re-entering the market, now represents a good time for those considering to sell their property to list,” Thompson says.

Barfoot’s rural and lifestyle block sales were strong for a second month with property sales at prices below $1.5 million “solid” and including a number of properties that had been on the market for some months.

But rural and lifestyle property sales north of Auckland are being restricted by listings not matching buyer interest, he says.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: NZME 'In Discussions' To Buy Stuff

NZME confirms that it is in discussions with Stuff’s owners Nine and has put a proposal to the Government regarding a possible transaction. However, NZME notes that these discussions are preliminary... More>>

Consultation: Plan Of Action To Protect Seabirds

The draft National Plan of Action plan outlines the Government’s commitment to reducing fishing-related captures of seabirds, with clear goals and objectives, supported by an implementation plan. More>>

ALSO:

Housing Issues: Fairer Rules For Tenants And Landlords

The key changes include: - Limit rent increases to once every 12 months and banning the solicitation of rental bids by landlords. - Improve tenant’s security by removing a landlord’s right to use no cause terminations to end a periodic tenancy agreement... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment remains around its maximum sustainable level while inflation remains below the 2 percent target mid-point but within our target range... More>>

ALSO:

Food Prices: Avocados At Lowest Price In Almost Three Years

Avocados are at their cheapest average price since February 2017, with tomato, lettuce, and cucumber prices also falling, Stats NZ said today. More>>