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House sales across Auckland rose slightly last month compared to May, according to Barfoot & Thompson director Stephen Barfoot.
“From a price perspective, June’s trading was positive, with the median price at $1,020,000, hovering around where it has been for the previous three months,” Barfoot said.
“The median price was 2.5 per cent higher than for June last year, although the average sales price was more robust, edging up 4.5 per cent to $1,236,336.
“This is 12.6 per cent ahead of where it was this time last year. Both the median and average sales prices are now sitting well above the bottom of the price cycle, which was experienced in June and July last year.”
Sales numbers at 681 were down a quarter on those for last month.
“May was a standout month for sales and there is invariably a seasonal decline in sales as winter approaches.”
Barfoot said that sales in the first six months of this calendar year were well ahead of the first six months trading last year.
“This year, we have sold 4499 homes compared to 3513 last year, an increase of 28.1 per cent.
“With overall higher sales numbers and prices remaining constant, the market remains in recovery mode rather than going backward.”
A high number of new listings continued to hit the market (1506), and Barfoots had 5736 properties on its books at the end of June, nearly a third higher than in June last year.
“A feature of June’s trading was the strength of sales in the top price segments, with 61, or nine per cent of sales, being above $2 million, with 19 of these sales being more than $3 million.”
Taking their time
Independent agent Donna Wyllie says the one thing that has changed in the market is that buyers are no longer in a hurry.
“The fear of missing out is gone,” she says. “Buyers are looking for completely finished properties, as most don’t have cash left over after buying a property to do it up. The preference is for new with double glazing.”
Wyllie says the buyers she is seeing are a mix of locals moving house, some Aucklanders relocating and some first home buyers.
Barfoot & Thompson’s Warkworth branch manager Sara-Jayne Kingston believes there will be a flood of investment properties coming onto the market following the bright-line rule change, which took effect on July 1.
“Investors who bought in the excitement of the post-covid period on low interest rates are now seriously hurting, with rates having trebled, while rents have risen marginally by comparison,” she says.
“This may not mean that vendors will get great results, but they will meet the market in order to stop topping up their investments.”
Kingston says the number of properties on the market in Warkworth with home and income options often surprises buyers.
“These types of properties not only provide an alternative income opportunity, but are often equipped with space for the boat, campervan and extended family to come and stay. With space becoming sparse in the city, buyers are pleased to find that there is real value for money in our region.”
Kingston says that having only recently taken on the role of branch manager in Warkworth, she has noticed that life in Mahurangi is about enjoying a slower-paced lifestyle.
“This may contribute to the fact that buyers take their time to make decisions as many of the properties are for sale by negotiation, rather than by auction as they are in the city.
“It’s also noticeable that most open homes are held on a Sunday only, as Saturday is reserved for sports, fishing and families.
“There isn’t the same urgency to get prepared to bid on a property, and the priority is given to taking the time to make the right choice for you. Currently, there is so much choice for buyers in the market, so waiting for a property that ticks all of the boxes, not just a few of them, is a luxury buyers can afford.”
