Auckland's biggest real estate agency group, Barfoot and Thompson, has reported it sold 668 properties in November, which was up 19.1% from October, but down 22.5% from November a year ago.
It reported its average sale price of NZ$553,743 was up 5.7% from NZ$524,004 in October, but was basically flat (up 0.6%) from NZ$550,217 in November a year ago.
About a third of all property sales in New Zealand are in Auckland and Barfoots has around 40% market share in Auckland. Its figures are closely watched because they are the first sales figures to emerge for November. The Real Estate Institute of New Zealand is expected to release national property sales figures next week.
“This is the highest average monthly price for nearly three years and it is attributable to a greater level of high value sales in the inner ring of suburbs around the central business district, and along the eastern coastal suburbs,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“In November we sold 55 homes valued at more than $1 million, and 122 homes valued at more than $750,000. More than a quarter of our sales were at the high value end, a far greater percentage than is normal," Thompson said.
“While high value sales have pushed the average price up, what it underlines is the confidence people have in Auckland property in the medium term," he said.
Several banks have been trimming some fixed mortgage rates recently in an attempt to breathe some life into the housing market.
This came after REINZ figures for October showed just 3,903 properties were sold in October, the lowest October total since REINZ records started in 1992. The volumes were only slightly above the all-time record low for any month of 3,666 hit in January this year and was down 36% from October a year ago.
However, Realestate.co.nz reported surge of new listings in November and First National reported sales picked up in the second half of November as banks had loosened their lending criteria.
More soon
Here is the full release below from Barfoot and Thompson.
Greater activity in high value properties in well established locations pushed up the average sale price for Auckland homes in November to $553,743. At the same time house sales volumes at 668 were up 19.1 percent on those for October, but still down on the numbers traditionally sold at this time of the year.
“This is the highest average monthly price for nearly three years and it is attributable to a greater level of high value sales in the inner ring of suburbs around the central business district, and along the eastern coastal suburbs,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“In November we sold 55 homes valued at more than $1 million, and 122 homes valued at more than $750,000. “More than a quarter of our sales were at the high value end, a far greater percentage than is normal.
“While high value sales have pushed the average price up, what it underlines is the confidence people have in Auckland property in the medium term.
“The volume of sales across the region has started to build, in part through vendors and buyers reaching agreement as to what is market value, and also through the lift which normally occurs as we move through Spring into Summer. However, sales are not as strong as in past years.
“For the past six months the number of homes sold each month has moved from a high of 689 to a low of 561.
“It is unusual for the number of homes sold to move in such a narrow band over such a long period, and while these sales numbers are down on last year, they demonstrate that the market is stable.”
During the month Barfoot & Thompson listed 1639 properties for sale, up 17.4 percent on October, and the highest number since March.
At month end its total listings were 6179, up 5.4 percent on the month previously.
Rentals
Property rentals continued their steady increase, with the average weekly rent increasing by $2 to $411. This was achieved across 729 new rentals. “Each month for the past four months the average weekly rental has increased, and there remains a strong demand for rental accommodation,” said Mr Thompson.
Note to editors
Last month, we reported the average weekly rent at $417, when it should have been $409. This occurred as a result of miscalculations associated with the introduction of the new GST rate. We apologise for this error.
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