Million Dollar Sales Push Up Auckland’s Average House Price

October 3, 2014

Media Statement

Million Dollar Sales Push Up Auckland’s Average House Price In September

Signs that prices and sales activity in the Auckland residential housing market will lift post the General Election are evident in September’s sales figures.

“September’s average house sales price at $738,876 is the highest on record,” said Peter Thompson, Managing Director, Barfoot & Thompson.

“It is $13,000 up on the previous highest average price established in March this year, and up 3.8 percent on the previous month’s average price.

“However, the sales data shows the high average price was the result of a relatively modest number of homes being sold, of which a high number sold for in excess of $1 million.

“Of the 959 homes sold, 164 or 17.1 percent were for in excess of $1 million.

“Properties in the higher price range are less affected by the uncertainties that exist during a run in to a General Election, and with such a high number of sales at the high end, the average price has lifted more than might be the case in a normal month’s trading.

“By contrast, September’s median price at $635,000, is up less than 1 percent on that for August, and is more in line with the median price over the past four months.

“Without doubt, the election’s influence can be seen in September’s sales numbers.

“However, what can also be seen in the month’s figures is that housing activity was starting to lift during September, and normal spring trading can be expected now the election is behind us.

“New listings, at 1314 for the month, were already starting to build and were up 16.4 percent on listings during August and only 5.9 percent down on July’s 1396 new listings.

“A factor which has the potential to put pressure on sales prices in the short-term is the low number of listings at month end. At 3075 listings, this is the lowest number this year and the lowest at the end of a September for more than a decade, and means that at the start of the month choice is extremely limited.

“It may take another month for the new listing pipeline to build.

“Sales of property for under $500,000 held up during September, accounting for 30.1 percent of all sales.”

Barfoot & Thompson knows Auckland best. It is the City’s leading property management and rental.

ENDS

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