Auckland prices: just a dip

After seven years of constantly rising property prices, November’s sales data points to the Auckland’s housing market taking a dip — but there won’t be a crash landing. Peter Thompson, managing director of Barfoot & Thompson, says: “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.”

According to the company’s sales figures, both the average sales price and the median price in November were down on those for October. The average sales price at the agency last month was $ 933,130 down 1.1 per cent on October’s and only 1.1 per cent higher than the average price for the previous three months.

Thompson says the median price at $ 850,000 was down 1.7 per cent on October’s and down 0.6 per cent on the median price for the previous three months.

He says: “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.”

It’s not, however, all bad news for sellers. Thompson says new listings at 1879 have been strong and sales at 947, although down marginally on the same month last year, were sound and up 21.7 per cent on those in October.

“The market is not over reacting to the changes occurring,” he says. “Clearance rates under the hammer at auctions were 30 per cent in November with another 20 per cent 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.”

Sales of properties on Barfoot’s books in excess of $ 1 million remain strong, with 377 ( 39.8 percent) exceeding the $ 1 million mark, marginally higher than the 39.2 per cent in October.

“The rural and lifestyle market continues to enjoy strong support,” Thompson says. “Last year the number of properties sold increased by 40 per cent over those for 2014 and the value of sales increased by 60 per cent. Listings, particularly from rural south Auckland, ensured a steady supply of new properties.”

— Steve Hart