Auckland's largest real estate agent, Barfoot & Thompson, says the number of sales and the average house sale price in September fell from August, as buyers were cautious about paying more than what they thought properties were worth.
But despite the slight blip, demand for properties remained high and Barfoots began October with the lowest amount of properties for sale on its books in a decade, managing director Peter Thompson said.
"Until there is a significant increase in the number of homes built, property in Auckland will remain in tight supply," he said.
However, “our agents have reported a significant increase in interest in sections for sale during September, and this may indicate a lift in new home building is on the horizon.”
The fall in average sale price by 1.1% to NZ$585,838 broke a four-month run of rising prices to record levels, Barfoots said. However, the average September sale price was still up 6.9% from the same month a year ago.
The realtor sold 969 properties during September, down 4.6% from August but "excellent compared with the level of sales we have made in a September for the past 5 years."
See the release from Barfoots below:
After a four month run of rising prices, the average selling price for Auckland homes stalled in September, with the average price falling on that for August by 1.1 percent to $585,838.
“The most significant factor still affecting the market at present remains the low number of properties for sale,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“Restricted choice has been an influencing factor all year, but whereas in the past four months it has contributed to rising prices, in September buyers were cautious about paying more than their assessment of market value.
“That combination of elements trimmed about $6000 off the average selling price during the month.
“Compared to the average selling price in September last year, prices were up 6.9 percent.
“We listed 1266 new properties in September, down 10.7 percent on those for August, but in line with the number we have listed in September for the past 2 years.
“Sales numbers at 969 were also excellent compared with the level of sales we have made in a September for the past 5 years, but were 4.6 percent down on those in August, which was the highest number of sales in an August for 8 years.
“At the end of September we had only 3733 properties on our books, so we are starting the month with available listings remaining at their lowest in a decade.”
Mr Thompson said top end properties continued to sell well in September, with 78 homes selling for more than $1 million, representing 8 percent of all homes sold during the month.
“At the same time we sold 456 homes for less than $500,000, representing 47.1 percent of all homes sold.
“Demand for property remains high and until there is a significant increase in the number of homes built, property in Auckland will remain in tight supply.
“Our agents have reported a significant increase in interest in sections for sale during September, and this may indicate a lift in new home building is on the horizon.”