Auckland Property Prices Show Resilience In March

Contrary to economic forecasts, the average and median sale prices of Auckland residential property in March showed resilience rather than declining.

“Many market analysts will be surprised by the prices achieved,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“There was a definite storyline developing that prices had fallen, but that prediction is a little premature.

“March sales were right in line with what typically happens at this time of the year as vendors and buyers return to the market after the summer holiday break.

“The average sales price for the month at $1,234,572 was up 3.2 percent on that for February and 11.4 percent higher than March last year.

“The median price at $1,180,000 was up 5.1 percent on that for February and 13 percent higher than in March last year.

“Sales numbers for the month at 1180 were down by a third on those for last March, but last March was abnormal, and the highest for the month of March on record. When compared to sales volumes in March 2020 and 2019, this March’s sales were higher.

“While the sales prices in March are the third highest on record, too much should not be read into one month’s trading and the dominant sentiment around where prices are heading remains uncertain. Overall, the rate at which prices are increasing is declining.

“Buyers are being more cautious than at the end of 2021, and vendors are trimming back price expectations that were based on the prices being achieved at year end.

“The most significant shift in March was the growth in the number of listings at month end. With 1994 new listings in March, the month end listings reached 4816, the highest number we have had on our books in nearly three years.

“This level of listings will ensure that buyers will not only have a good amount of choice, but it will also give them additional time to make measured decisions. It also means vendors who are prepared to be flexible as to the price they will accept will create the opportunity to reach an agreement on price.

“The growing influence that apartment, townhouse and bare section sales are having on the Auckland market can again be seen in March’s sales data.

“In March, just a quarter of all sales (24.3 percent) were of properties valued at less than $750,000. In January, that figure was 18.1 percent of sales and in February 21.5 percent.

“Sales of properties for more than $2 million represented 11 percent of sales, and of that number, 3.3 percent were sales above $3 million.

“The Auckland and Northland rural and lifestyle markets saw a return of buyers, with sales for the month exceeding $104 million, $38 million more than in February.”

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