Barfoot & Thompson, who sell more than 40% of all residential real estate in Auckland, sold fewer houses in December that in any month since April 2012.
But they sold them for a record average of $700,387 they said in data released by the firm today.
That represents a 12.2% gain on the same month a year ago.
Median prices (the middle of the market) are rising fast too with these prices up more than 14% over the same month a year ago to $629,000.
The restricted supply is fueling the gains.
There were only 631 new listings reported by the firm in December, the lowest level since records are available in January 2001. The previous low was 697 in December 2012.
Sales exceeded new listings for only the second time in thirteen years.
The 'lack of choice' is becoming acute. The 2,969 listing available is the third lowest level over the same period and contrasts starkly with the high point of 7,538 in March 2001 - after more than ten years they have less than half the properties available for sale.
In 2013, Barfoots sold 13,123 properties, up from 11,710 in 2012 and 9,346 in 2011. They listed 17,999 new properties in 2013, up from 16,140 in 2012 and 14,648 in 2011. By our count, they failed to sell 5,317 in 2013, down from 5,603 in 2012 and 6,584 in 2011 - the drop-out rates declining over three years from about one third to less than one quarter of all listings available.
Barfoot & Thompson are one of the earliest real estate firms to release their data, giving an advance look at volumes and prices in the upcoming QV and REINZ releases later in the month, in the nationals largest housing market.
Here is the Barfoot press release:
Overall, Auckland’s housing market remained buoyant, finishing the 2013 year with a December residential average price of $700,387, the highest ever, although sales of property under $500,000 have declined.
“Seasonal trends which traditionally see higher value properties traded have not been offset by recent Reserve Bank changes and nor would they given the next three to four months of high summer season,” said Barfoot & Thompson Managing Director, Peter Thompson.
The median price in December was $629,000, a 14.25 per cent increase against the December 2012 median of $550,500.
The average median for 2013 increased by 8.7 per cent over the past year to $578,815 which, given the pressures on supply and the stable and low mortgage lending rates, is modest.
In December, 817 residential sales were made. Although this is down on December 2012 figures, it was the second best December in the last 10 years.
“The year ended with lack of choice again becoming an issue with new listings for December at 631. At month end we had 2969 listings on our books," Mr Thompson adds.
“These figures tell a compelling story about the strength of the Auckland housing market, an improving economy, and people’s belief that residential property continues to represent a dependable medium to long term investment."
“With listings being so restricted, and buyer demand so high, it suggests that as we enter the New Year, the Auckland real estate market will experience a strong first quarter.”
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