Auckland property sales race ahead while prices mark time

While Auckland house sales activity was at its highest in more than 15 years during July, price increases stalled with the average sales price at $827,359 remaining much the same as for the past two months.

“In July, the average sales price was within $1000 of that for June, and only $5000 ahead of that for May,” said Peter Thompson, Managing Director of Barfoot and Thompson.

“A stable average price over a three month period is a trend we have not witnessed for some time.

“The combination of high turnover and stable price points to buyer confidence in the strength of the market at current prices but also recognition that property is fully priced.

“The last three months of trading also demonstrates that high sales numbers can be sustained without prices increasing.

“The first signs that price increases were slowing could be seen in last month’s sales figures, and this month’s results confirm that prices are no longer racing ahead.

“In fact, the median price in July at $757,000 is down $29,000 on that for June, but up $7000 on that for May.

“What continues without pause, however, is property turnover, and in July we sold 1388 homes, 18.9 percent higher than the number in June and 41.2 percent higher than in July last year.

“It is the highest sales figure for a July going back to 1999, and 4.5 percent higher than in July 2003, the year normally regarded as the most active on record.

“New listings at 1777 were the second highest for any month this year (the highest being in March at 1997), and were 27.3 percent higher than in July last year.

“Total listings at month end at 2802 were at their lowest since December last year, and will contribute to choice remaining tight during August.

“Sales of properties in the million dollar plus category at 411 during the month were the second highest on record.

“There was also strong interest in property in the under $500,000 category, with sales numbers reaching 200 and representing 14.4 percent of all sales. In June sales of properties under $500,000 fell to 13.6 percent of sales.

“With Spring approaching comparing market activity in the next few months with 2014 trading could be challenging, as in 2014 trading was significantly impacted by a ‘wait and see’ attitude that developed as we moved towards the General Election. In the lead up to the election sales numbers slowed and prices did not recover until November.”