Barfoot & Thompson's July sales at 6-year high, average price up $40k in a month

Property

Barfoot & Thompson's July sales reach a six year high with stock levels hitting a new low leaving buyers with little to choose from

4th Aug 21, 10:30am by Greg Ninness

Barfoot & Thompson had another rock solid month in July with sales numbers at a six year high.

The real estate agency, which is the largest by a significant margin in the Auckland region, sold 1235 residential properties in July, barely changed form the 1243 it sold in June. However, that was up 13% on July last year, and up a whopping 41% on July 2019.

Last month's sales were the highest for the month of July since 2015. Selling prices remained extremely firm.

The agency's average selling price set a new record of $1,183,602, an increase of just over $40,000 compared to June, while the median price declined slightly to $1,101,000. That's down by $8000 from June's record of $1,109,000.

The agency received 1349 new listings in July. That's down 11% from July 2020, but up 17% compared to July 2019. Barfoots had a total of just 2629 residential properties available for sale at the end of July, down by almost a third compared to July 2020 and 2019.

That's the lowest number of homes the agency has had available for sale in any month of the year for more than five years, meaning buyers may be faced with a limited choice of homes to buy.

Barfoot & Thompson Managing Director Peter Thompson said the company's stock levels were at their lowest level for the middle of winter "in modern times."

"The winter months are normally a time when market activity slows, and prices and sales can edge lower," he said.

"However there are no signs of that occurring this year."

The comment stream on this story is now closed.

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80 Comments

by Chris-M | 4th Aug 21, 10:35am 1628030100

The Labor government have completely lost the plot.
God knows what future we face.

by flyer | 4th Aug 21, 10:45am 1628030700

It'll be between the haves and have nots. Depending on which camp you are in will determine how you feel about the situation.

by Dave Moderato | 4th Aug 21, 10:50am 1628031019

I find it's better just to shut up about it these days. I was in decades ago, not bought or sold in years. Never expected anything like this to happen, we had rather modest ambitions looking back. For us it 'just happened' We haven't participated in the latest madness.

by antonybao | 4th Aug 21, 11:53am 1628034838

One way ticket to Australia...

by flyer | 4th Aug 21, 11:54am 1628034879

Depending on the camp you are in.

I'm in the "in" camp. Love the increases.

by HouseMouse | 4th Aug 21, 5:41pm 1628055694

Sums up our self interested society.
'If I am going great guns and others are in misery, great!'

by 7jai | 4th Aug 21, 12:15pm 1628036142

See ya mate! Btw, will you be selling your house? I'm interested.

by Independent_Observer | 4th Aug 21, 1:53pm 1628041989

This series of posts nicely sums of the culture/psychological issues we face.

NZ is rapidly turning into a very nasty/hostile place to be.

How many houses would you need to own before you would be happy?

by rastus1 | 4th Aug 21, 2:25pm 1628043924

For many happiness is dependant on others being unhappy.
And has NZ become a prime example of that.
The older generation created fantastic country, the boomer landlords have wrecked it beyond recognition,

by Independent_Observer | 4th Aug 21, 2:43pm 1628045021

Yes rastus agree. In my experience, those following the greatest generation are morally/ethically lost. I don't think the post above is from a boomer however - so the hostility exists across generations in our society.

In terms of boomers - many I know are financially well off. But they're completely lost in terms of what principles they believe in and are willing to act upon and as a result a morally poor. Most appear completely overwhelmed but are unwilling to admit that - yet they want to retain control and continue to status quo (because of the benefit to themselves). There are of course exceptions to this like anything - and I know some (but not many!) boomers that can see what is happening and would like to change the situation - see Chris-M below as an example.

Some altruism is sorely needed across society (and not just NZ...but most of the western world).

by Chris-M | 4th Aug 21, 2:39pm 1628044798

I don't know that it breaks down so clearly along inter generational lines. I am a boomer have children, and am totally distraught at what is happening. I am far from alone among my peers. Sure I know a few of my generation that are as you describe. I also know a few of my 34 years old sons generation who have totally embraced the property speculation merry go round and are very comfortably multi multi millionaires. (Smart enough crystalize enough of their gains to secure their future whatever happens)
I suspect that this behavior is pretty evenly spread through the generations. It would be interesting to see some analysis.

by JustAnOpinion | 4th Aug 21, 2:45pm 1628045126

The "great generation" prior to the boomers did do an amazing job of starting this country with horses and back-breaking labour. But they did not create the country the boomers did, with their bulldozers, steel, concrete and frankly the number of them.

Boomer landlords built the houses they owned in the main, and the continue to build them, around one third of New Zealand’s homes have been built in the last 20 years.

I am no a Boomer and house prices have increased the most in the last few years from any time in our history, its time to let this chestnut go.

by brisket | 4th Aug 21, 3:24pm 1628047461

I'm not sure about this... It seems like a lot of our most important infrastructure, both physical and institutional, was built by the generation before the Boomers, in the 40s-70s. There might be some Boomers around who worked on hydro plants in their uni holidays, but the initiative (and the taxes to pay for the infrastructure) came from an older generation.

by JustAnOpinion | 4th Aug 21, 4:20pm 1628050808

"Baby boomer" is a term used to describe a person who was born between 1946 and 1964 so they will have been building this infrastructure from circa 1965. The older generation certainly built their share but all the Dams, all our motorways and almost all our power stations we have were built as part of National's "Think Big" in the late 70's and early 80's.

by 7jai | 4th Aug 21, 4:23pm 1628050995

Zero sum game. That's reality. There will always be greed.

Those who own more than 1 property, those are the ones with moral issues. Why would you ever need more than 1 property? What happened to having 1 home to have a roof over your families shoulders?

Until the government issues a mandate to restrict one house per resident, this will never go away.

by Roelof | 4th Aug 21, 5:29pm 1628054943

Interesting that we blame asset price inflation on investors but we dont blame consumer price inflation on consumers.... you know...greedy evil consumers.
Both types of inflation require excessive monetary inflation.
The cause ( blame for ) of monetary inflation lies solely at the feet of Central Banks and Govts.

For me, its not a surprise that the govt and central bank response to covid has resulted in the biggest crackup boom in our lifetime.
Its global....
They use the term unconventional monetary policy... But thats a corruption of the word.
Kinda like saying a cheat is just playing by unconvential rules..... And there is a price to pay

by C'est la vie | 4th Aug 21, 8:38pm 1628066281

I know a residential property investor and his life philosophy is "shit runs downhill". This was after I questioned him about raising his rents to pay for his expensive toys.

by Brock Landers | 4th Aug 21, 2:49pm 1628045393

Something I noticed after living overseas is how much nicer people are to each other in most other countries. Especially between social classes.

New Zealand does seem to have a widespread culture of punching down on those less fortunate that would be abhorred in much of Europe.

Quite a few of these P.O.S in these forums.

by refactornz | 4th Aug 21, 3:21pm 1628047292

And punching down high achievers.

by Lord Dowding | 4th Aug 21, 4:02pm 1628049748

Are you seriously trying to tell us that the social classes in London for example are all nice to each other?

by JustAnOpinion | 4th Aug 21, 4:25pm 1628051141

They just don't mix as often as we do. But from my experience when they do, they mix well, however I am not sure they are better at this than we are. I suspect we have a very much smaller upper-class and a more cohesive view of who we are as a people. I rowed on the Thames with a crew that contained a doctor from Cambridge/Eton and a labourer from Essex. We all got on really well but beyond our crew gatherings there was limited social interaction.

by Brock Landers | 4th Aug 21, 4:37pm 1628051823

Nicer. The wealthier classes tend to not go around bragging and being assh*les to people "beneath" them.

That kind of behaviour would be much more likely to earn a knife wound than here though.

by 7jai | 4th Aug 21, 4:24pm 1628051064

NZ is probably too nice. I've seen countries where the wealth gap would make NZ a laughing joke.

by HouseMouse | 4th Aug 21, 5:43pm 1628055795

A long time ago, we were a caring society that strived for egalitarianism.
Since the mid 80s we have evolved more and more towards a selfish, dog eat dog, society.

by theglc | 4th Aug 21, 1:25pm 1628040314

they try hard but lets face it they are totally incompetent

by richard1965 | 4th Aug 21, 4:39pm 1628051972

Even now this F$#@ are not raising the LVR from 40% as that will effect speculators but just changing high risk loan that is mostly used by FHB.

by flyer | 4th Aug 21, 10:37am 1628030229

Love it. With spring just around the corner prices will keep edging up. Realised 260k profits from one sale. The other is up 100k and will be up another 100k by year's end at this rate.

I predict prices to flat line from winter 2022.

by Luke83 | 4th Aug 21, 10:48am 1628030887

I agree, I predicted this sort of thing back on Jan, the rate of increase will be less but I still see a 20% plus increase from Feb 2021 to Feb 2022 then flattening next year. The LVR "change" is already adopted with only 9.6%of lending being at under 80% and has been that way this year so that's just political headlines. The DTI will have an effect once in place, however only starting discussions in October, they said it will take atleast 3 months so no implications there till early 2022 at best.

by Macrology | 4th Aug 21, 12:18pm 1628036288

I don't think what you say about LVR change already being adopted is true. You need to look at owner occupier lending only. I think it is about 12% over 80% now. When the speed limit has been 10% banks have averaged around 8%, so would have an impact on high LVR lending.

by JustAnOpinion | 4th Aug 21, 11:24am 1628033095

https://i.pinimg.com/originals/77/ca/1c/77ca1c0796e8c8ccf2b9c2772a9b4a9…

by Ebisu | 4th Aug 21, 11:45am 1628034331

You sold that first one too soon and will miss out on 100K.

by flyer | 4th Aug 21, 12:04pm 1628035442

@ebisu

You could say that but I'm in the game again using my profits. I'm up 100k on my new place, to be built. Only put in 50k deposit, nothing else until settlement.

When it goes up to 200k later this year I'll sell it.

by Nzdan | 4th Aug 21, 1:04pm 1628039051

Exactly, you cannot leverage your gains if you haven't realised them.

by Lord Dowding | 4th Aug 21, 4:05pm 1628049936

Trading property like stocks I didn’t actually think this was common but probably far more wide spread than people realise.

by flyer | 4th Aug 21, 4:20pm 1628050814

@Lord, it's rampant where I am.

by xingmowang | 4th Aug 21, 10:44am 1628030693

a revive of socialism and even communism will take place in the next five yrs around the world.

by JustAnOpinion | 4th Aug 21, 10:47am 1628030866

Although I know that will be an almighty hand-brake on dealing with our real existential crisis of climate change I suspect you are right.

by brisket | 4th Aug 21, 11:23am 1628033035

I think you're right. Once you reach a certain level of inequality social unrest is inevitable.
Property investors would cry 'communism!' if the gov't banned them from buying any more houses -- but they'll never consider that the alternative might be forced repossession at gunpoint ten years down the line if we persist on the current trajectory.

by JustAnOpinion | 4th Aug 21, 11:27am 1628033247

https://media0.giphy.com/media/ULyYV5amK2eYM/200.gif

by thinktank | 4th Aug 21, 11:28am 1628033338

Impossible, we gave back all our guns.

by HouseMouse | 4th Aug 21, 5:47pm 1628056021

They also don't think that we might move towards a South African society where you live behind barbed wire and are mugged at traffic lights. Noice!
All that matters are the capital gains....pretty one dimensional view of success and happiness.

by Kauri | 4th Aug 21, 10:45am 1628030739

I have some advice for Govt regarding sorting out house price disaster - Go hard! Go early! (Too late for the later so only option is go harder).

by JustAnOpinion | 4th Aug 21, 10:50am 1628031046

The plan for dealing with the housing crisis is well known, it's Kiwi-build. Now that's sorted we can get down to the serious business of raising social benefits and government wages out of line with inflation and generally dishing out Aroha. All bad news is to be dealt with by a sliding scale of frown from "I'm just squeezing one out" to "I think I have squeezed one out!"

by HouseMouse | 4th Aug 21, 5:47pm 1628056051

Haha

by thinktank | 4th Aug 21, 10:55am 1628031329

And now applying LVR restrictions will fuel more FOMO, driving prices up as they all try to get in before October. Then the rest will saunter in over Summer as normal.

Just updated my spreadsheet and it is both satisfying and daunting to see the monthly increases. Doesn’t matter which online value I check, it’s all pretty much the same. Up, up and away.

by CWBW | 4th Aug 21, 11:04am 1628031880

I think we're all over-reacting.

The median house prices for Auckand by BT from June to July actually fell 0.72% which is neither what anyone would call a strong growth least to call it spectacular. The retreat for this is not an outlier and growth actually looks feint compared to 2014.

Looks like a smooth moderation in motion this time of the year and there's no need to throw toys into the housing market.

RBNZ and the Finance minister can sleep well tonight- it's all just a drama on the social media.

by Caughtinthemiddle | 4th Aug 21, 11:14am 1628032447

I hope that your comment is ironic. The data shows patchy changes but overall it's still a strong market. Where our holding is for instance, in Papakura has gone up 6.7% in 3 months. I can see a scramble to get on the property ladder by those who see themselves being locked out by incoming DTI legislation so I suspect the latest moves by Labour / RBNZ will cause a 3-6 month surge in demand followed by a stagnation after Spring / Summer.

by Lord Dowding | 4th Aug 21, 4:07pm 1628050059

Interesting comment and seems very plausible.

by HouseMouse | 4th Aug 21, 5:48pm 1628056101

Yes and mid winter.

by Caughtinthemiddle | 4th Aug 21, 11:07am 1628032058

I own a couple of modest rentals as a disclaimer and have had good tenants for 7 years now. We had ambitions of using any equity to help out our 3 kids when their time came and purchasing them was to insulate us against any big swings in value. I just don't know what to make of this madness. I'd be more than happy to put some of the (winnings) aka profits when we sell as tax given the ridiculous money they have made. We are in this position (like many I suspect) by serendipity and so slicing some off to try and correct the mess that has been made by the price romp seems more like rationale thinking than socialism.

by JustAnOpinion | 4th Aug 21, 11:15am 1628032528

That is one way of trying to even the pitch and I commend you for it however the person carrying the load is not relieved by this action. The FHB is still facing an insurmountable cost in regards to getting into the market. Perhaps if the tax you were suggesting was given directly to young qualified FHB's that would be more effective?

by Caughtinthemiddle | 4th Aug 21, 11:59am 1628035187

At the risk of "when I was...", in th 90's in the UK they had an excellent initiative which was rent to buy. The government built and owned the house and the tenant could opt into an arrangement where there rent could buy the house over time too. I had some friends who managed to stay in London because of it. The tax could help build such houses. It's a win win. Helps just FHB's if criteria to get on are tailored well, new housing stock, and state houses that are well looked after. If the government was really smart the capital outlay could be turbo charged by allowing private investors to inject capital given innovative funding / return parameters with the government simply acting as a guarantor. All possible with a little imagination!

by JustAnOpinion | 4th Aug 21, 12:49pm 1628038161

This is a good idea. I have personally run rent to buy schemes using my own capital. Out of the three we did, two went well and those families benefited from about 400k of capital growth during the time we were working with them. One could not stay stable on their rent and we had to part ways. While I am pleased there are a couple of families out there in their own homes which could not have got into the market any other way I would not do it again. Having the government do it is the best way.

by AJ123 | 4th Aug 21, 11:25am 1628033131

Seems like going forward buying houses will be same as winning the lotto in NZ..

And who already had a portfolio is winning it on monthly basis.

No action can change the above graph to south, do what ever you want to do, it's a hopeless case.
Labour=Failure
Rhymes also

by 7jai | 4th Aug 21, 12:17pm 1628036252

Hope prices continue to rise. As part of a big cohort of FHB who were able to buy these last few months, I would like to see my only asset appreciate in value.

by Brock Landers | 4th Aug 21, 12:23pm 1628036607

You hope more kiwis are financially ruined so that you can feel a little bit more smug?

by JustAnOpinion | 4th Aug 21, 12:51pm 1628038298

We live in a post-hope world.

by Independent_Observer | 4th Aug 21, 2:09pm 1628042970

And we wonder why we have such bad mental health and suicide stats here. We're not actually that nice - we think we are and like to think we're 'kind' but on this inside, we're actually quite hostile to one another (which in my experience of dealing with people is based upon a lack of hope for a good future which in turn breads fear and dread and all of the other darkside personality traits - including extreme greed/selfishness).

by JustAnOpinion | 4th Aug 21, 2:51pm 1628045517

Good comment, we know the data supports this view but we have the cognitive dissonance on full strength. Despite not actually doing anything by almost any measure to correct this problem, and while actively trying to avoid actually doing anything about this problem (GBF) Jacinda is still really nice right?

by Nzdan | 4th Aug 21, 1:12pm 1628039564

Ohhhhhh, that explains why your comments on here are so emphatically against any possibility of a housing correction. I initially thought maybe you were an investor with decades old blinkers on or something.

As a FHB from 2017, housing appreciation is nice but you still have to borrow if you want use the equity. The house doesn't grow or shrink in size depending on the valuation direction.

by CourtJester | 4th Aug 21, 2:45pm 1628045108

Translation: "F*** you, i've got mine"

by Independent_Observer | 4th Aug 21, 2:55pm 1628045712

Yes - this sums up the modern kiwi psyche, but while voting for the Adern 'be kind' propaganda.

by AJ123 | 4th Aug 21, 3:29pm 1628047784

Political parties doesn't have high standard when it comes make policies for housing but labour have set the new low.. Doubling the house price just in 4 years.

Incompetence at it's peek..

by HouseMouse | 4th Aug 21, 5:49pm 1628056180

As a recent FHB you don't feel empathy for those who can't buy?

by 7jai | 4th Aug 21, 6:20pm 1628058007

I think that question should be directed to the Government that you all voted in no?

As many FHB's have finally been able to make a purchase after saving the last 5-10 years for a deposit; paying at current peak prices, I think it's normal to think that we wouldn't want house prices to "crash" like many of the ignorant and non-sensible comments I see in all the replies. Who in their right mind wishes for something like that? You do know a "housing crash" causes ripples effects to the economy right? Consumer confidence will be lost, which then leads to jobs being lost.

We should be focused on the key question (that i've been asking myself these last 10 years JUST to save a deposit to buy a first home), which is, how do we help FHB achieve their dream of only a home. Wishing for a housing crash is complete nonsense and is essentially wishing NZ goes down the drain even further.

If so many people are so against NZ and the way things are run, no one is holding you back in staying here. The EXIT is that way, feel free to leave as you want. Problem is, they always say it, but never do it. Be thankful you're in a country that at the very least has no COVID issues. I've seen families, friends pass away because countries just can't contain it.

by mikekirk29 | 4th Aug 21, 1:02pm 1628038937

NSC sales down 15% in July compared to July 20. Average price up over 30% in past year. Connected?
Take a look at full report to see which areas showing sales increase or decrease. Most are flat

by theglc | 4th Aug 21, 1:24pm 1628040254

That average price graph is just begging for OCR rises

by Independent_Observer | 4th Aug 21, 1:49pm 1628041774

I think its fair to say that if you're under 30 and/or don't own a house (and probably don't have rich parents), NZ is turning into a form of state sponsored oppressed hell.

by Brock Landers | 4th Aug 21, 4:07pm 1628050040

That's exactly what it is.

There are plenty of people out there that have studied hard, worked hard, saved hard, paid off their student debt, made great strides in their careers and done everything right who are still watching helplessly as the cost of a lousy kiwi home is engineered skywards by our kleptocrat political class by many tens of thousands of dollars month, month after month, year after year without end in sight. And it's been going on their entire adult lives.

To rub salt in the wound there is an cohort of sneering and condescending dropkicks cheering it all on on from the sidelines, who only though accident of birth happened to be in the right place at the right time to benefit from it.

The way this country operates beggars belief.

by Independent_Observer | 4th Aug 21, 4:15pm 1628050551

Crazy right...

by JustAnOpinion | 4th Aug 21, 4:35pm 1628051754

This is a reality for people I know. As for those who think it is funny or simply have an emotional disability please just try and tune them out.

I believe there is a large group of people (I am one) who despite being born at the right time to simply sleep-walk into this position would be motivated and are motivated to get behind a change. I am a long time National voter as were my parents, the only reason I voted Labour in 2017 was on the promise of action on housing. We know how this has turned out. The still incredibly high popularity of this government confirms that people are just not capable of seeing a way out. Right now I would vote for a blind donkey rather than Labour. Last time I voted TOP as a protest vote.

One day there will be someone we can vote for that will not lie to us, someone capable, one day...

by theglc | 4th Aug 21, 2:33pm 1628044417

Homes.co.nz says the value of our house has increase by over $4000 a week over the last year.

I wish I could just have that $4k credited into my bank account each week

by JustAnOpinion | 4th Aug 21, 2:49pm 1628045352

If you are over 60... https://youtu.be/KHudlrfBghE?list=TLGG48psfIeC5CswNDA4MjAyMQ

by Brock Landers | 4th Aug 21, 5:12pm 1628053932

You could sell it and move to somewhere cheaper.

by Squishy | 4th Aug 21, 2:47pm 1628045276

As a property investor I think Prime Minister Ardern and her government are such inspiration to younger generations. She shows that you can be tough on the poor and working class, yet still be loved by all. Your choice of major political party next election will be New National and Old National. It's broken and it's beautiful.

by richard1965 | 4th Aug 21, 4:37pm 1628051860

This reflect that Orr and Robertson have screwed FHB and now are trying to throw FHB out of the market.

This is the result of LEAST REGRET policy by Orr in April last year and than again by following the policy of WAIT AND WATCH early this year.

All is done intentionally as definitely he is is no @#$

Read Bernard Heckay observation :

https://thekaka.substack.com/p/dawn-chorus-rbnz-move-will-hit-first?tok…

by Lord Dowding | 4th Aug 21, 4:44pm 1628052267

What cant there be a stamp duty on anyone with more than a single house. Tweaked to the point that the same house will cost them more than the FHB

by HouseMouse | 4th Aug 21, 5:52pm 1628056335

Exactly. Not rocket science one would think. Especially for a 'Labour' party with a majority...
Traitors.

by Carlos67 | 5th Aug 21, 3:54am 1628092442

Trying to "Fix" the current situation with yet another tax is not going to fix the problem. Also if nothing else Labour will always look at any effects on its voting block and despite what they have said their actual actions are that if you don't own a house we don't really care about you.

by Axxel | 6th Aug 21, 3:57pm 1628222256

Have Barfoot&Thompson paid back their Covid wage subsidy yet?
They were the first in line last April and totally creamed it in commission ever since - pigs round a trough