Auckland Property Market Shakes Off Economic And Election Apprehensions
Rather than being tempered by medium term economic concerns or the approach of a General Election, the Auckland housing market has enjoyed its strongest sales performance in a July for five years.
“In July, buyers put aside any apprehensions they may have about future market values, and committed,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“While anecdotal market information suggested that July trading was going to be strong, the extent of activity will have caught most forecasters by surprise.
“Demand was so strong that you have to go back to the height of the last property sales cycle to see turnover and values of equivalent levels.
“Normally as we approach a General Election the market goes a little quiet as buyers take a ‘wait and see’ approach, but even this event is not holding back activity.
“In July the market built on the unexpected lift following the lifting of pre-covid-19 restrictions, and we sold 1095 properties. This is a level of sales normally only seen at the height of the summer sales season and is only one property less than we sold in March, which was prior to the on-set of Covid-19.
“We have not sold this many properties in a July since 2015.
“The average sales price at $979,189 is the second highest on record and is 2.7 percent up on that for last month and 6.5 percent ahead of that for July last year.
“The median price at $890,000 for the month is down 2.2 percent on that for last month but is 11.2 percent ahead of where it was in July last year.
“Sales numbers were strong across all price categories. Sales of homes for under $500,000 accounted for 9.9 percent of all sales, those for more than $2 million accounted for 4.7 percent, and those for between $1 million and $2 million 34.6 percent.
“A factor contributing to the high number of sales was the level of new listings, which at 1518 were close to a third higher than at the same time last year, and the highest in a July for five years.
“At month end we had 3873 listings on our books. Although this is down 3.2 percent on those for the previous month they are in line with where listings were at the same time last year and gives buyers a reasonable choice.
“The lifestyle and rural markets saw the same increase in activity as occurred in the urban market, with these markets experiencing the highest volume of sales and value of sales for the month of July since 2016.
“Activity was mainly driven by small lifestyle blocks to the south and north of Auckland with vendors and buyers being in tune with where the market is at.
“Farm sales interest in Northland for kiwi fruit, dairy and beef properties are more active this winter than in the past few years.”