Auckland property market suffers dip

Prices and sales decline as new listings surge

Auckland property market suffers dip

Auckland’s property market began 2024 with both prices and sales falling short of the levels seen in the last quarter of the previous year, according to new analysis by real estate firm Barfoot & Thompson.

“In line with what has occurred for the past four years, January sales numbers and prices fell below those for December,” said managing director Peter Thompson (pictured above).

The slow start to the year is due to the impact of the holiday season, Thompson added. January traditionally records the lowest sales numbers of any month and sees minimal activity in the high-end market, specifically homes selling in the $2 million plus range.

This January, the market stayed true to form with only 25 homes in the premium segment changing hands, accounting for a mere 5% of total sales. The only difference is that this figure represents the smallest number of $2 million plus homes sold in January over the last four years, said Thompson.

The median sale price for January was reported at $966,500, showing a 7.1% decrease from December. Meanwhile, the average price fell by 8.3% to $1,083,487.

Total sales plummeted by 41.1% to 504 compared to December’s figures. But new listings surged by 83.3% to 1,221, which is 32.7% higher than the same period last year.

“Vendors are confident that the market has found its feet and are strongly re-entering the market,” Thompson said of the uptick in new listings.

“At the same time, anecdotal comments from agents suggest that there is a solid group of buyers currently sitting on the sidelines waiting for the government to implement its announced modifications to property investment rules. Once implemented, those changes have the potential to significantly increase buyer demand.”

Barfoot & Thompson’s market update also noted that the rural and lifestyle markets surrounding Auckland saw a considerable number of transactions initiated before the holiday season concluded in January.

According to the firm’s numbers, the rural and lifestyle sectors saw January sales totalling $38.8 million, surpassing figures achieved in six of the last 12 months.

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