Committed Buyers Drive Increased Competition For Auckland
Committed buyers have returned to the Auckland residential property market.
“It was a result foreshadowed by strong sales in October, and the lift the market received then has flowed into significantly higher prices in November,” said Kiri Barfoot, Director, Barfoot & Thompson.
“Activity has not returned to the heydays experienced at the height of the previous price cycle but Auckland sales have certainly shrugged off the modest turnover and price movements experienced over the past two years.
“The median price for the month at $891,000 is up 5.8 percent on the average for the past three months while the average price at $963,671 is up 3.5 percent.
“Monthly price increases of this size were last seen when the market was at its strongest in 2016 through to the early part of 2017.
“Sales numbers for the month at 960 were the highest in a month since March this year and the highest they have been in a November since 2015.
“A contributing factor to the price increases is the declining pool of properties on the market.
“In November we listed 1517 new properties, and although this is one of our higher monthly numbers this year, it is our lowest in a November for 11 years.
“At month end we had only 3703 properties on our books, close to a quarter lower than we had at the same time last year.
“End result is that when high quality properties reach the market there is determined competition among committed buyers which is driving prices higher.
“Price is proving no barrier to property sales at the top end of the market, and in November we sold 44 properties valued at more than $2 million and a further 322 valued between $1 million and $2 million.
“At the same time we sold 103 properties valued at under $500,000.
“Based on the high number of signed up and conditional sales in the pipeline the prospects of November being a rogue month is unlikely and we see an active market remaining through to year end and continuing into the first quarter of 2020.
“The rural and lifestyle markets experienced one of the better month’s trading this year, but prices did not reflect the gains made in the urban Auckland market.
Lifestyle listings were up with good attendances at open homes. One hectare lifestyle blocks close to the northern boundary of Auckland are starting to reach the market as a result of transferable lot subdivisions, and these are proving popular.”