Barfoot & Thompson's stock level the highest for the month of October since 2008 suggesting the buyer's market may persist over summer

Barfoot & Thompson, Auckland's largest real estate agency, recorded a drop in sales in October, while selling prices for the month gave off mixed signals.

Barfoot & Thompson sold 930 residential properties in October. That's down from 1032 in September (-9.9%), and down from 969 (-4.0%) in October last year.

The drop in sales volumes was surprising because October marks the start of the summer selling season and sales usually start increasing during the month.

Selling prices did not give a clear indication of any direction, with Barfoot's average selling price dropping by more than $10,000 (-0.98%) for the month, to $1,079,030 in October from $1,089,686 in September. The median selling price increased by $20,000 (+2.2%) to $950,000 in October from $930,000 in September.

One reason for the mixed results could be the high number of properties Barfoots currently has for sale .

At the end of October the agency had 6024 properties for sale. That was up 7.4% compared to October last year and was also the highest number and the first first time it has been above 6000 in the month of October since 2008, during the Global Financial Crisis.

High stock levels have been a dominant feature of the housing market over winter and created a buyer's market. The latest figures suggest buyers continue to have plenty of choice as the market kicks off the summer season.

"While October's median selling price increased by 2.2% during the month this is not an indication prices were on the move," Barfoot & Thompson Managing Director Peter Thompson said.

"Rather, it is a signal that prices are stabilising around the $950,000 mark," he said.

"Buyers are not yet prepared to put aside their caution," Thompson said.

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