Falling Auckland House Sales Have Limited Impact On Prices

April data statement

May 3, 2017

Falling Auckland House Sales Numbers Have Limited Impact On Prices

Auckland property sales numbers fell to their lowest level in an April since the 2008 global financial crisis last month, but lower turnover had a limited impact on sales values.

"Sales numbers in April were down by about a third compared with the average for the previous three months, yet given this significant fall the average and median prices held steady,” said Peter Thompson, Managing Director of Barfoot & Thompson.

"The median sales price at $850,000 for the month was down only $5,500 on the average median price for the previous three months.

"The same trend was there around the average price, which at $917,079 was down only $25,000 on the average for the previous three months.

"While prices have declined from March's all-time record highs, the fall relative to the average for the first quarter of this year is modest, and on a year-on-year basis the median price is up 3.7 percent and the average price is up 5 percent.

"It is a changed market from what we have been experiencing for a number of years and you have to go back nine years to find an April in which fewer homes were sold.

"Buyers are being far more selective, are taking their time over committing and are only prepared to pay the market price.

"Vendors are not lowering their price expectations significantly but are accepting that to achieve an above market sales price in the current climate their house has to be special.

"New listings in April were excellent at 1292, and combined with lower sales this allowed stock numbers and buyer choice to remain high.

"At month end we had 4214 listings on our books, close to what it has been at month end each month this year, but 48.1 percent higher than it was at the same time last year.

"The decline in sales numbers was felt evenly across all price ranges, with more than a third of all sales being for more than $1 million.

"Sales of property under $500,000 accounted for 6 percent of all sales.”

Ends

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