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Average Auckland September selling price and number of houses sold down on August, Barfoots says, breaking 4-month run of rising prices

Average Auckland September selling price and number of houses sold down on August, Barfoots says, breaking 4-month run of rising prices

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."

More soon.

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.”

Barfoot Auckland

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11 Comments

B&T talking their book, as usual, quelle surprise.

 

As to the 'lift in building' the headwinds are obvious and have been for several years:

  • Land prices are wrong.  So everything on top is, too.
  • Building regs are insanely complex:  Councils, terrified of liability, try to second-guess everything, and all at the hapless owner's cost in terms of time and $
  • Site regs are insanely complex:  the latest gem is that Roofers must wear steel-capped boots.  Roofers!  Who generally wear soft-soled footwear (even sticky rock-hopper gear) so they can detect the soft spots, broken tiles, thin air and the like.  More compliance $, guess who pays.
  • LBP's are needed for everything imaginable.  Guess who pays.
  • Materials are a duopoly.  Guess who pays.
  • And I could go on, but the bottom line is:

 

No matter how much cheap credit is tipped down this rabbit-hole, Supply of new houses is highly unlikely to lift strongly.

 

But be of good cheer, B&T.

 

While getting new housing supply is pushing on a string, tipping all that luvverly cheap mortgage availability into fixed existing supply, is gonna suit youse guys Very well!

 

Let the (4% Fee revenue based on price) Good Times roll!

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3.7% increase on the month for Central Auckland.

Even if you only held a small porfolio of say 4million, you've made:

150k

In one month

 

 

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So $4,000,000 is a "small portfolio"?  That's 135 years pay at the median income, at least in Kiwi Land, Planet Earth.

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Well how many houses in 'leafy suburbs' of Central Auckland can you buy for 4m currently?

 

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Well, I've done and dashed the property thingie in Auckland.. We got a good price - although I will always be wondering if we could get a bit more had I put it few months later... 

PS..  Brisbane's property scene is a bit grim...

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Chairman Moa.... you probably missed the peak, but if you'd hit it you'd have hit it by good luck than good judgement. Better to sell up 3 months before the peak rather than a week afterwards in a crash situation.... you don't want to be running for the door the same time as everyone else.

 

You did the smart thing, got out when everyone else was getting in.

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thanks for the good words.. 

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Thanks for the rare intelligent comment.

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1          Herne Bay       $1,872,333
2          St Marys Bay   $1,469,667
3          Parnell             $1,330,778
4          Epsom             $1,141,889
5          Stanley Point   $1,134,333
6          Remuera          $1,110,278
7          Takapuna         $1,109,278
8          Westmere        $1,065,000
9          Ponsonby        $1,044,778
10        Mission Bay     $1,043,000
11        Devonport       $1,026,889

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http://myproperty.raywhite.com/PropertyDetails.aspx?id=848114

 

Saw this one sell last night - about 290 sqmeters - could probably swing a cat on that, just.

And the price?

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No takers - never mind.

$1,350,000

 

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