Stability And Modest Confidence Returns To Auckland Housing Market

A level of stability has returned to the Auckland housing market albeit one trading at a lower level than during peak activity in the last quarter of 2021.

“The median sales price for October at $1,092,500, was consistent with where prices have been at for the past three months,” said Peter Thompson, Managing Director of Barfoot and Thompson.

“This price was $28,000 higher than last month’s median price, and $57,500 lower than in October last year.

“While it represents a fall of 12 percent on the all-time high residential median price in November, the median price has now stayed within a 4 percent range for the past four months.

“Sales numbers are also starting to edge up, and October’s sales of 627 are 2.1 percent higher than those for September and 3.8 percent higher than the average number of sales for the previous three months.

“They are modest improvements but represent a degree of confidence returning to a market that has been under price scrutiny and rising mortgage interest costs for much of the year.

“Sales are being made with buyer interest currently focused on the under $2 million market.

“At prices above this, buyers and vendors are still looking to find common ground around property values.

“In October we sold 37 homes for more than $2 million, representing 5.9 percent of our sales. This is the lowest number of sales in this price category for more than two years.

“The focus on sales under $2 million contributed to the average sales price for the month being $1,136,982, a decline of 2.4 percent on September’s average sales price.

“October’s average price was down 11.1 percent on December’s all-time peak average price.

“While rising mortgage interest rates are proving a deterrent, buyers are recognising opportunities at current prices.

“New listings for October at 1371 were up 5.4 percent on last month’s number but were lower than we normally see at this time of the year.

“Total listings at month end were 4743, making choice the best it has been for five months.

“Activity across our lifestyle and rural markets in Northland and Greater Auckland in October was a modest improvement over September’s slow month, with total sales value lifting to $45.9 million.”

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