Sales volumes and selling prices both dropped sharply at Auckland's largest real estate agency in February, while new listings and stock levels rose strongly.
Barfoot & Thompson sold 785 residential properties in February, down from 824 in January, a drop of 4.7% for the month.
However, the agency's January sales were particularly high and while that level of momentum does not appear to have continued into the following month, February's sales were still the strongest they have ben for the month of February since 2021.
While sales levels showed mixed results, median and average selling prices both posted substantial falls.
Barfoot's median selling price declined by $96,000 (-9.6%) in February, to $904,000 from $1 million. That was the lowest the agency's median selling price has been in any month of the year since July 2020.
Barfoot's average selling price took an even bigger hit, dropping by $155,797 (-13.3%) to $1,013,976 in February from $1,169,773 in January, the lowest it has been in any month of the year since September 2020.
Ominously for the Auckland market, while Barfoot's sales levels and selling prices declined in February, the available stock of homes for sale was building up.
Barfoots received 2252 new residential listings in February, up 8.6% compared to February last year. That pushed the agency's total stock of homes for sale up to 6159, up 2.7% year-on-year. That was the highest level of stock the agency has had on its books in the month of February since 2010.
These figures clearly suggest that buyers in Auckland remain spoiled for choice when looking for a home and that is being reflected in lower prices.
"The attraction that is drawing buyers is current price levels," Barfoot & Thompson Managing Director Peter Thompson said.
"With the median sales price in February at $904,000, down 9.6% for January, and the average price at $1,013,976 down 13.3%, these are among the lowest monthly median and average sales prices since in Auckland since prices peaked in 2022," he said.
"Effectively, housing supply is starting to meet housing demand and the prices are starting to draw in buyers who once felt priced out of the market," Thompson said.
Barfoot Auckland
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12 Comments
More listing, lower prices, throw in lower rents to boot equals a triple specvestor negative. All before the bun fight for capital gains tax even gets going on the run into the election. And before the war fueled gas prices pump inflation and interest rates again.
How do you spell yield again... oh yeah minus another 30% on price just to stack up.
Last week: Banks forecast a flat market for 2026
This week: Auckland records price falls of circa -10%
Central West Auckland outperforming.
Not suffering the 'Townhouse Curse' in these preferred leafy suburbs!
🥂
Where is Central West Auckland? Mt Albert? No townhouses?
I can't hear the humming of the economy which the ASB talked about. Nevermind because every economist and financial commentator is saying" the economic recovery is well underway".
The NZ property crash is accelerating downslope, without doubt!!
- I think the crashing market has got inspiration from the Olympic downhill slaloms.....:)
Worse still, for the Coteyyourselfin PonziDebtVior peeps, this is a 100% crash confirmation, reported by the "most property Ponzi positive" Barfoot's Property Ponzi benefactors.....
Its look out below folks, this market bottom in a very deep cracking V....and still not in sight.
The next report from FRED, will be very interesting for Ponzi gamblers!
Real Residential Property Prices for New Zealand (QNZR628BIS) | FRED | St. Louis Fed
The chart doesn't get updated often unfortunately. Its still only got Q3 2025 as the latest data point.
So the real time real inflation adjusted price falls are actually worse now than what this chart shows. ie we are now back down around 2016 prices in real terms.
Not to read into one data point too much but......there has been a pretty obviously trend of flat prices for Auckland for a few years now. e.g median trading in a band of $930,000 - 1,000,000. This is the first data point that is a significant anomaly to that trend.
If technical analysis were true for housing markets, then this is showing strong weakness to the downside. If true, the next floor might be around the $800 - 830K mark. Another low read next month might be a breakout into a new trend into the downside.
I wouldn't be rushing to buy into this market - so don't be quick - patience may actually be a virtue in this market now.
On this topic...
I still don't understand why the banks are issuing so much debt at low LVR's with this much downside risk - it would be easy for prices to fall another 10% from here and all those buyers (and mortgages) to be in negative equity. Almost looks to me like desperation by the banks to try and prop up prices at current levels. If I were working at a bank and somebody said to me looking at the chart above - 'do you think its a good idea to issue people loans at 10% LVRs in this market with these economic conditions and this level of geopolitical uncertainty?' - my answer to this would be hell no, the risk is way too high.
Banks have never been that responsible.
Its all about making big cash today, bonuses today.
When all the newbys (bank cannon fodder) get captured at 4.5% mortgages rates or so....then/when/if we see 6 to 8% mortgage resets in 2027, the poor newby sods will need to fold.
The NZ ARM mortgages, are indeed the very risky end and a big stage setter for the GFC:
The Big Short (2015) | Ninja Loan (No Income, No Job, And No Assets) | Steve Carell, Max Greenfield
Many NZ home sellers - are now becoming increasing- VERY MOTIVATED!
All lending is risky. House prices could have fallen by 10% at any time in the past as well.
DGMs if prices go up slightly: "its just that the bottom end of the market has collapsed and only top end selling"
DGM's if prices go down slightly for one month: "this is definite proof of the housing apocalypse"
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