Resilient Auckland Property Market Edges Back Towards Normality

During its second full month of restricted sales activity, the Auckland property market edged back towards normality in October with stronger sales numbers and firmer prices.

“In October, the market showed its resilience with an increased level of new listings, excellent sales numbers and rising prices,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Given the restraints under which the market was operating, it was an outstanding month’s trading.

“New listings at 2012 were only 5 per cent down on last year’s level, which was unaffected by any lockdown, and more than double those for September.

“Vendors had to overcome many challenges to prepare their properties for sale and buyers were presented with the greatest level of choice they have had for seven months.

“Sales for the month at 814 were nearly a quarter higher than those in September, but more than a third down on where they are likely to have been without restrictions on sales activity.

“Both the average price at $1,188,946, up 5 per cent on September’s, and the median price at $1,150,000, up 4.5 per cent, re-established the gradual increase in sales prices being experienced in 2021.

“The average sales price increase in October, over last year’s price for the same month, is 13.8 per cent, and that for the median price is 18.9 per cent.

“Contributing to the increase in average and median prices was buyer focus returning to higher priced properties.

“In October, 85 per cent of sales were for properties that sold for more than $750,000. In September, the percentage was 77 per cent.

“The high level of new listings in October has contributed to available properties at month end increasing to 3041. Although this is at the highest level in five months, it is still 19.1 per cent behind the monthly average level for 2020.

“In the lifestyle and rural markets of Northland and Auckland, buyer enquiry was strong but sales were limited by availability and activity did not have the same uplift in numbers and prices experienced in urban Auckland.

“The inability of Auckland buyers being able to inspect Northland property is continuing to impact on sales in the region.

“Also slowing sales activity is the growing practice of banks requiring their own valuers to view rural property prior to contract.”

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