The downturn in the Auckland housing market is becoming more severe, with Barfoot & Thompson's median selling price now $30,000 lower than it was a year ago.
The agency's median selling price was $810,000 in July, down $30,000, or 4%, compared to July last year, and down $90,000, or 10%, from its peak of $900,000 In March.
The average selling price was $908,319 in July, down from its peak of $968,570 in March, but still ahead of the July 2016 average of $867,681.
Barfoot & Thompson is the largest real estate agency in the critical Auckland market by a substantial margin, and its latest results suggest that prices have not just stopped rising in Auckland, they are now in retreat. Thus instead of reaping capital gains, buyers could be facing a period of capital losses.
The decline in prices comes against a background of an even bigger fall in the number of sales, with Barfoot selling 747 residential properties in July, down 28% compared to the 1034 properties sold in July last year.
Last month's sales was the lowest volume the agency has sold in the month of July since 2010.
New listings were also down to 1173 in July compared to 1426 in July last year.
July's new listing were the lowest the agency has signed up in the month of July since 2011.
However the total number of homes the agency had available for sale in July was the highest it has been in six years, with Barfoot having 4088 residential properties available for sale at the end of July, up 36% compared to the 3012 it had available for sale in July last year.
'It will it will take some time for both buyers and vendors to navigate the changing market'
The combination of rising inventory levels, falling sales and falling prices suggests the market is continuing to weaken.
"Without question it will it will take some time for both buyers and vendors to navigate the changing market," Barfoot and Thompson managing director Peter Thompson said.
"Opportunities for vendors to sell are still plentiful, however sellers need to be willing to set themselves realistic expectations and listen to what the market is telling them.
"Vendors are less likely to see quick sales and significantly above average price increases, in the short term at least.
"However this is still a good time to buy and sell in Auckland, given what are relatively small market movements.
"In this type of market, people are motivated by the more fundamental reasons to move house such as a growing family, change of job or downsizing.
"This could be seen as a return to house sales being influenced by those more traditional factors," Thompson said.