Sales numbers and selling prices up at Barfoot & Thompson as the spring upturn finally arrives

Property / news

Barfoot & Thompson's median selling price edges above $1m for the first time in seven months

7th Nov 23, 10:25am by Greg Ninness

Barfoot & Thompson's sales were largely flat in October but selling prices rose from September.

Auckland's largest real estate agency sold 846 residential properties in October, little changed from 825 in September and 879 in August. However, that was up 219, or 35%, on the 627 it sold in October last year.

October's average selling price was $1,090,724, up $31,953 (3%) compared to September but barely changed from $1,088,457 in August.

The median selling price increased for the third consecutive month to $1,011,250, but remains $228,750 below the market peak of $1.24 million achieved in November 2021.

The biggest change was a surge in new listings, with Barfoots receiving 1829 new listings in October. That's up from 1469 in September and 1371 in October last year.

That helped to push up the total number of residential properties the agency had available for sale to 4564 at the end of October, up from 4192 at the end of September (+8.9%), but still below the 4743 properties it had on hand at the end of October last year.

"Growth was modest, but it was across the board, with a high number of new listings, sales numbers increasing and both the median and average prices for the month exceeding 1 million," Barfoot & Thompson Managing Director Peter Thompson said.

Vendors returned to the market in strength and buyers were also prepared to commit, he said.

The comment stream on this story is now closed.

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48 Comments

by JimboJones | 7th Nov 23, 10:30am 1699306210

I always find it funny that new listings are considered a positive for house prices.

Supply increased quite a bit in October, demand stayed flat, in any normal market that would lead to lower prices.

by huttman | 7th Nov 23, 11:01am 1699308081

not sure which city you were looking at, if you look at wellington, there is still a shortage of listings.

by Uncle Bulgaria | 7th Nov 23, 10:34am 1699306449

"The median selling price increased for the third consecutive month" - remarkable really. Imagine the Nats bump will last a couple of months at least too. Maybe get 6 months of rises.

by JimboJones | 7th Nov 23, 10:40am 1699306815

People are believing the crap coming out of the media, apparently there is now FOMO again. Yet the number of sales is still pretty low, people are outbidding themselves because the media is telling them they need to.

by Grattaway | 7th Nov 23, 10:56am 1699307819

The herd mentality is alive and well in NZ - milking time again

by wingman | 10th Nov 23, 3:17pm 1699582666

Those betting against the herd bought property in the last year or two and drove a hard bargain.

by Uncle Bulgaria | 7th Nov 23, 2:42pm 1699321358

Seller expectations are sticky in NZ. My brother in law has just been miles off on a tender.

by starrider | 7th Nov 23, 4:11pm 1699326674

We were the same about 3 months ago listed as negotiation - we made an offer the venders then switched to a priced listing which was $300k above our offer. And our offer was at the top end of the range, based on comparable properties over the preceding 12 months.

Absolutely crazy. It then sent to deadline sale - nothing. Still listed.

by interesting1234 | 7th Nov 23, 4:17pm 1699327036

They change the titles periodically to try and make it seem like a new listing, or relist with different titles. Must Sell! Owners have moved on! Has to go! LOL

by Rob Reid | 7th Nov 23, 5:14pm 1699330489

LOL. By then buyers have moved on.

by Flying high | 7th Nov 23, 8:34pm 1699342467

Uncle B

If market rises for 6 months will it turn tail

By then it could have momentum, a developing trend,

by Averageman | 7th Nov 23, 10:41am 1699306893

So.... some higher value transactions like Taika Waititi's purchase in waterfront Point Chev to drag the stats up. Is this news...?

by JimboJones | 7th Nov 23, 10:42am 1699306978

The only real news here is that house prices seem to have flattened after the big fall. No real evidence of them increasing yet.

by JRSNZ | 7th Nov 23, 10:55am 1699307732

You know how medians work, right?

by HughJorgan | 7th Nov 23, 1:34pm 1699317263

His name is literally Averageman. What do you expect.

by Smudge02 | 7th Nov 23, 10:50am 1699307428

The current media/pro-property spruikers propoganda and BS is nauseating. Narcissistic and self secrving, plain and simple.

by sheriff_of_nothing | 7th Nov 23, 11:10am 1699308638

It's also very effective.

Like other forms of market manipulation and predatory financial behaviour, there should be guard rails around it.

These people are as reprehensible as the payday loan van operators that once cruised south Auckland - and much more dangerous.

by sparrow | 7th Nov 23, 11:13am 1699308790

It's not just the media, the rot has spread far further.

by Jesse1 | 7th Nov 23, 11:18am 1699309115

Casinos aren't allowed to advertise that the ball has fallen on black five times in a row and their "expert research" says that it's going to have run of red soon. These people shouldn't be able to advertise their BS predictions that involve such are large asset in everyones lives.

by meh | 7th Nov 23, 12:28pm 1699313299

Calling it an "asset" instead of a home is part of the BS propaganda. The corporate biz-i-ness world has overflowed into the personal human life.

by delboy | 7th Nov 23, 11:25am 1699309526

The MSM has largely become irrelevant so they sensationalise every story and headlines about property prices increasing gets people angry meaning more website clicks.

Not sure if any actually print newspapers anymore.

by Uncle Bulgaria | 7th Nov 23, 2:52pm 1699321947

People need to calm down with the 'media bad' narrative. We are so addicted to it that it got Winston elected. Also if you hate the MAINSTREAM MEDIA so much...you do have an easy choice.

by Averageman | 7th Nov 23, 3:53pm 1699325596

Yep. The alt media is on the ride due to the bias from the owners of the mainstream media. Things like....this website do very well. I do confess to buying the weekend herald, but only in the winter to help light the fire for the week. Must say the color newsprint burns poorly.

by 1689 Baptist | 7th Nov 23, 12:00pm 1699311645

A number of houses sold and the media reported the number. How is that spruiking?

by ryanjames | 7th Nov 23, 12:53pm 1699314837

Well you see - any reporting which indicates upward pressure on prices is spruiking.

by Zwifter | 7th Nov 23, 1:10pm 1699315850

Anything that doesn't fit the DGM narrative is obvious spruiking. Did tell everyone the window was August to October.

by Rob Reid | 7th Nov 23, 2:10pm 1699319420

At these prices and cost of living it was a window with bars on it. And small. Quite high up - arrow slit really...

by Nellbell | 7th Nov 23, 11:05am 1699308314

Went to an open home a few weeks back, really crowded, all keen and pacing out distances and seriously looking. Come tender time no bids, word is keen buyers but no one could raise the money. Perhaps there is just spring fever around but buying power is still reduced.

by Averageman | 7th Nov 23, 11:13am 1699308804

As you would expect. Its not that people dont want to buy, its the Banks lending policies stopping people buying.

by Grattaway | 7th Nov 23, 11:33am 1699309984

Are you really saying that the bankers are the sensible ones now

by Averageman | 7th Nov 23, 11:50am 1699311028

Not at all. The CCCFA legislation forced Banks to act in a more responsible way vs their bonus driven lending practices. Something about directors being personally liable for lending to people that cannot afford it helped as well. Sadly needed to stop the banks taking advantage of lenders being oblivious to their financial decisions.

by MikeM | 7th Nov 23, 1:04pm 1699315466

Contrary to beliefs that the current property downturn is due to higher interest rates, it's actually the introduced CCCFA and soon to be introduced DTI ratio rules that are undermining banks' ability to lend. Lending took a dive well before interest rates began to rise and the RB will end up scratching it's head when their eventual easing of monetary policy doesn't transmit the way it's intended.

by IT GUY | 7th Nov 23, 11:48am 1699310899

ANZ 9% test rate got to take the sting out of offers.

by 1689 Baptist | 7th Nov 23, 12:01pm 1699311685

ANZ tested me way back in April at 9.5%.

by Albert2020 | 7th Nov 23, 12:06pm 1699311990

Also affecting new house builds. My neighbour is subdividing and is planning to put a new build at the front of the property but speaking to her today and finance has been an issue as test rates have gone north of 9% so its stalled.

by Uncle Bulgaria | 7th Nov 23, 2:56pm 1699322190

And top up loans. ASB will only loan me max 12k at the minute even though my mortgage is probably about 40% of the house value. 12k! Guess if the bank is saying you can't afford it you should probably listen.

by interesting1234 | 7th Nov 23, 4:16pm 1699326961

Debt is expensive and risky currently. I've seen a few posts on local private home pages on FB with families asking for "2 or 3 bedroom home with front and back yard, ideally an extra room or rumpus room but not necessary" for around $475k. Expectations still unrealistic on both fronts it seems

by meh | 7th Nov 23, 5:04pm 1699329898

Money is expensive hahaha.... or is it homes... or wealth... or just plain living...

Might be time to check in to the loony bin... might be the cheapest option... oh we don't have them anymore lol

by HouseMouse | 7th Nov 23, 12:45pm 1699314320

Yes, spruiking is all well and good but people’s ability to pay is the bottomline

by meh | 7th Nov 23, 12:40pm 1699314057

https://www.oneroof.co.nz/news/they-want-to-take-the-money-and-run-mum-…

How will this play out?

It becomes evident that it's all about tax avoidance (whether "legal" or not). If the IRD has any balls - they do have the teeth - a rush to sell because of the Brightline changes should trigger tax liabilities. As I've been out of the tax profession for awhile I'd be interested to hear what the resident tax experts think, what the letter of the law says without any personal bias creeping in.

The other end of the spectrum highlights a different issue -

“There will be a number of investors losing money every week just waiting for bright-line to expire. Because you might be losing money day-to-day, but could look at it and go, ‘It would be way worse if I have to pay capital gains tax’. You might be sitting on a $200,000 capital gain but if it’s taxed at 33%, that’s like $66,000. You would be probably happier just battling away waiting for bright-line to expire.”

being so upset by the tax bill that one can't be happy with the gain, and prefers to "lose" money day by day. And these will be the ones bitching about others not paying tax. What a world we live in.

by HouseMouse | 7th Nov 23, 12:48pm 1699314489

Somewhat ironic, lol

by Blackbeard | 7th Nov 23, 12:56pm 1699315007

A good portion of National voters would have been mum and dad investors buying into Nationals bright line escape plan. National knew this and used it as a vote gathering policy.

by Sluggy | 7th Nov 23, 12:56pm 1699315008

Ive read and heard exactly that so many times. Back in the 90s I was given a work sheet for property investment. Back in the days where building depreciation and shifting the loss to personal income and the beloved LAQC's were all the rage. A friend of mine went through a marriage bust up, his wife was the big earner, but had investment properties so adjusted income was less than his, so he was paying child support on the back of that. Its always been about tax minimisation to some degree or another.

by meh | 7th Nov 23, 1:05pm 1699315527

Oh I know that. I was an accountant/tax expert from late 90's until several years ago. I could see early on how it was going to play out, the wider implications and it became more and more obvious. I couldn't consciously promote it or play the game myself.

by Llama_360 | 7th Nov 23, 1:41pm 1699317685

Another apartment complex with mortgagee sales in the news today : https://www.nzherald.co.nz/business/mass-mortgagee-sale-two-empty-new-t…

There was one in Browns Bay in the news yesterday

by J.C. | 7th Nov 23, 2:04pm 1699319045

Funding from existing China players is "drying up" globally. A new set of players will take over. Transition period.

Doesn't meant that these properties ever get completed. Not as simple and seamless as that.

by Pragmatist | 7th Nov 23, 4:12pm 1699326740

Not surprising. Most Kiwis don't want to live in apartments, and certainly those that could afford $2.9m apartments have plenty of other options.

by wingman | 10th Nov 23, 10:12am 1699564356

Property blast-off is imminent folks, get on board or miss the flight.