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.
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