Long-Awaited Lift For Auckland Housing Market Arrives

The anticipated resurgence in Auckland’s property market occurred in November with prices and sales numbers increasing.

“The long-awaited return of strong trading finally arrived in November,” said Peter Thompson, Barfoot & Thompson’s Managing Director.

“Sales for the month at 1002 were up 6 percent on our average monthly sales for the previous three months, and it was the first time in eight months that our sales have exceeded 1000.

“Prices were also up, with the median price at $1,011,000 pushing above the $1 million mark for the first time in five months. The median price was 6.8 percent above the average price for the previous three months.

“The average price at $1,132,795 was 2.4 percent above that for the previous three months.

“This lift in sales and prices will add to the growing confidence homeowners and buyers have that the worst is over for the housing market, and that stability is returning.

“The continued outlook for falling mortgage interest rates, a declining rate of inflation and expectations that the economy is edging towards recovery are all contributing to the resurgence in housing activity.

“Market choice for buyers remains at a decade-high level.

“We listed an additional 1782 properties in November, lifting our month end stock levels to 5711. This is 8.3 percent higher than where the average has been for the past three months and 18 percent higher than at this time last year.

“While November’s strong trading has set the market up for an active summer’s trading, high stock levels will likely contribute to price increases being restrained.

“Buyers were active across all price segments in November, with 19.6 percent of sales being for less than $750,000 and 6.2 percent of sales for more than $2 million.

“While buyer interest increased markedly in the Rural and Lifestyle markets to the north, south and west of Auckland, in November the longer sales process common in these markets creates a longer time lag in sales completion than urban sales. Sales activity in November at $43.1 million was in line with where sales were at this time last year.”

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