Increased sales volume, prices and listings recorded
In October, the Auckland residential property market took a positive stride towards recovery, according to Barfoot & Thompson.
Peter Thompson (pictured above), managing director of Barfoot & Thompson, said that while the growth was modest, it was seen across the board, with a high number of new listings, increased sales numbers, and both the median and average sales prices for the month breaching $1 million for the first time since March.
“Throughout August and September, there were positive signs that the corner had been turned, but in October it all came together, and the market moved forward firmly,” Thompson said.
“Vendors returned to the market in strength, with new listings for the month at 1,829, a quarter higher than in September, and a third higher than for the same month last year. Buyers were also prepared to commit, and sales at 846 were the highest for an October for three years, and a third higher than in the same month last year.”
Eased from the shackles of rising interest rates and economic uncertainty, the median price surged to $1,011,250 – the highest median price in the last seven months and a 2.5% increase from September and up 1.8% than the three-month average.
“The average price, at $1,090,724 was the highest average price in the past four months and is up 3% on that for September,” Thompson said.
Thompson said the October sales featured a notable level of interest in housing within the $1 million to $2 million price bracket.
“While always the segment with the largest number of sales, in October it accounted for 54% of all sales, the first time this year that this price category has accounted for more than half of all sales,” Thompson said.
“Sales in the $1m to $2m price category are particularly sensitive to mortgage repayment levels and show that those taking on debt at current interest rates are confident that from now on prices are only likely to rise.”
Meanwhile, sales at more than $2m accounted for 6.6% of all sales.
By the end of October, the 4,564 listings provided buyers with a wide selection of properties to choose from.
“The rural and leisure markets in the regional areas to the north, south, and west of Auckland experienced the same surge in new listings as metropolitan Auckland but sales activity remained subdued,” Thompson said in a media release.
“Buyer interest in terms of inquiries and viewings increased in these markets on that for past months, particularly towards the latter part of the month, and vendors and buyers are showing an increased flexibility and willingness to reach agreement,” he said.
“It has raised expectations that the rural and leisure markets will soon experience increased sales activity.”
See table below for Barfoot & Thompson’s October 2023 Housing Market Update.
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