After a strong performance in July, Barfoot & Thompson's sales eased back in August.
Auckland's largest real estate agency sold 889 residential properties in August, down from 957 in July and unchanged from the 889 it sold in August last year.
The average selling price was slightly weaker too, dropping from $1,100,355 in July to $1,081,032 in August (-$19,323, -1.8%), while the median price was unchanged from July at $950,000, which was just $2500 lower than August last year.
New listings were also steady with 1622 received in August, up a tad from 1605 in July, but up by 11.6% compared to August last year.
That helped keep stock levels high, with the agency having 5873 properties available for sale at the end of August, down by 3.3% compared to July but up by 13.8% compared to August last year.
August's stock level was the highest it has been for the month of August since 2008.
The high level of stock for sale, and the influx of fresh listings onto the market, should ensure that buyers will continue to have plenty of choice as we head into spring.
That is also good news for vendors, provided they are realistic in their price expectations.
"The Auckland market is trading well for vendors who are pricing their property in line with current market conditions as there is strong demand from buyers at current prices," Barfoot & Thompson Managing Director Peter Thompson said.
"Vendors holding out for prices to lift are missing out," he said.
A notable feature of Barfoot's sales in August was the number of properties that sold for under $1 million.
"They made up 56% of all sales in August and this highlights the growing attraction of lower cost townhouses and apartments - three years ago sales in this price category made up 41% of sales," Thompson said.
Conversely, sales of property over $2 million were at their lowest level in five months.
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17 Comments
Greed for tax free gain is strong. Know a few holding out for $5m foreigner threshold. What is the next black swan. A bit of noise that the UK and France may need an IMF bailout. The IMF money is basically the US Fed, so that means Trump has to agree.
So will the next swan be an Orange one...?
"Greed for tax free gain is strong"
Not many people enjoy paying taxes, I doubt you enjoy it.
Everyone wants to pay minimal tax and still have perfect public systems as well. We can't have it both ways.
I like roads, hospitals, police, doctors, teachers etc. Are you saying you dont...?
Many are in denial about how much they and their source of income benefit from tax dollar spending.
The above 2mil market is still bloody expensive when it comes to paying the mortgage..... its little wonder its not moving.
BF trying hard here to make vendors meet the market
average down again falling $623 a day during August, showing lack of higher end homes selling.... Averages going to take a major hit as $2.2mil vendors wake up to $1.8mil reality next year. Low end not as impacted. Going to take 80k off the NZ Average over the next 24 months.
This crash has a way to run, but at least reality is here. Listings..... are up.
As large as they are, it's not just mortgage payments though is it? All the associated costs ever-increasing...rates, insurance, etc. And then general cost of living - food, power. Even though I can afford now to buy a decent house in NZ more or less freehold (and have been looking for the past year), I'm starting to wonder why bother...
My rates are now $120 a week, makes renting look that much cheaper.... god forbid living in WGTN rates are nuts , my rates plus house insurance etc are now $220 a week
Getting a decent home in a reasonable suburb in a school zone is at prices that would send anyone to Aus.
I feel very sorry for the young decent folk who work hard, are good citizens, raise their kids well but can't afford a home unless its in feral country.
Chris Bishop gets it - I think.
I'm not sure Australia housing is as cheap as you think.
Most first home buyers in Melbourne are the equivalent of Pokeno or further afield. I would rather my kids at an NZ State school as well. If you're not an Australian citizen, you have to spend at least 200 days there as well per annum, or be hit with 8% foreign purchaser surcharge annually.
yes i have heard State schools are not on par with many of ours.
However our desirable ones tend to be in expensive zones - so your free State education at a better school requires a contribution to the NZ property market ponzi.
I think what Barfoots are saying is that prices continue to go down. But they don't want to say it our loud,
as long as sales are up they are banking $$$
"Vendors are missing out..."
on lower prices
I continue to believe that there is some seasonality that is blurring the scale of the decline. Higher value homes sell more mid-year - as buyers on their second or third home will be less driven by kids at school.
I suspect also that it is not just current vendors waiting for summer and lower mortgage rates. There is a backlog of would-be vendors also waiting for higher prices. And another 14,000 building consents in Auckland, or enough for 30,000 people when net immigration is marginal
Biggest thing hiding drops is lack of reality in the 2mil vendor space ... when they start selling, its going to hit hard the stats as they will not be knocking 100k off to get a sale.
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