After seven years of constantly rising prices November’s sales data points to the Auckland housing market ‘turning’ but remains well positioned to achieve a soft landing.
Signs the rate of price increase has been slowing have been there for some months but November’s sales data confirms that for the time being at least, Auckland prices have stopped rising.
Both the average sales price and the median price in November were down on those for October.
The average sales price in November at $933,130 was down 1.1% on October’s and only 1.1% higher than the average price for the previous three months.
The median price at $850,000 was down 1.7% on October’s and down 0.6% on the median price for the previous three months.
What puts November’s lower prices into context is that November and December are traditionally when prices peak for the year, and this is the first time in eight years that November’s average and median sales prices have been below those for the previous October.
Encouragingly new listings at 1879 have been strong and sales numbers at 947, while down marginally on the same month last year, were sound and up 21.7% on those in October.
The market is not over reacting to the changes occurring.
Clearance rates under the hammer at auctions were 30% in November with another 20% being sold in the 24 hours following auction.
Those sellers who were realistic and prepared to trim their reserve price achieved sales and buyers were confident in meeting near record prices.
With 3881 properties on our books at the end of November, properties for sale are at their highest since February 2013.
“Sales of properties in excess of $1 million remain strong, with 377 or 39.8% of all sales exceeding the $1 million mark, marginally higher than the 39.2% $1 million sales represented in October.
Properties sold for under $500,000 at 73 made up 7.7% of sales.
The rural and lifestyle market continues to enjoy strong support.
Last year, the number of properties sold increased by 40% over those for 2014 and the value of sales increased by 60%. Sales values and numbers have remained stable throughout 2016, and have held on to the percentage gains of last year.
Strong new listings, particularly from the rural area to the south of Auckland, ensured a steady supply of new properties came to market in November.
In November, 52 rural/lifestyle properties sold for a total value of $69.2 million.
Peter Thompson is Managing Director of Barfoot & Thompson, which knows Auckland best as the City’s leading real estate company, selling around one in three Auckland residential homes, significantly ahead of all other competitor brands. Barfoot $ Thompson was the Sponsor of the Sixth Annual Indian Newslink Sir Anand Satyanand Lecture held on July 25, 2016 at which Reserve Bank of New Zealand Governor Graeme Wheeler was the Guest Speaker.
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