Seasonal Pattern Shows Up In April Property Sales

Seasonal Pattern Shows Up In April Property Sales

April sales follow decade long pattern, and are down on March sales

Auckland residential property sales in April followed their traditional pattern and fell significantly on those for March.

“Sales volume in April at 671 properties was down on that for March by 27.6 percent,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“It is a pattern that has occurred every year for the past 10 years, and this year’s decline is in fact lower than what normally occurs*.

“While the average price at $541,486 was down on that for March, by less than 1 percent, it was more than $38,000 higher than the average in April last year.

“This April’s average sale price is the highest ever for an April.

“The combination of falling sales numbers and stable prices is common for April, and those familiar with traditional Auckland trading patterns will read nothing significant into this month’s trading.”

Mr Thompson said while investors who were waiting on the May 20 budget for direction may be having a modest impact on sales, the market currently was being driven by home buyers.

“The budget will give certainty to the market once people have analysed any changes it may contain, but this April has a familiar feel to the start of the normal autumn/winter easing in demand.

“New listings in the month at 1312 were solid, and although down 21.5 percent on those for March, were 12.2 percent ahead of April last year.

“At the start of May we had a healthy 6079 properties on our books, the same number as in April 2009.”

Rentals

During April the company let 668 rentals at an average weekly rent of $398.

“The average weekly rent for the past three months is $396, which is $6 higher than for the average for the same period last year.

“New rentals in April, at 668 properties, was marginally higher than in April last year.”

*In 2009 the fall in sales in April from March was 12 percent, 2008 28 percent, 2007 38 percent, 2006 34 percent and 2005 29 percent.

ENDS

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