Auckland property sales defy forecasts

The Auckland property market did the opposite to economic forecasts, and June sales numbers returned to normal trading levels with prices remaining stable.

“It was a remarkably solid month’s trading with no signs of market fragility,” managing director of Barfoot & Thompson Peter Thompson says.

“Sales for the month at 820 were around where we would expect them to be at this time of the year and were 4.3% higher than at the same time last year.

“The average price at $953,417 was more than $5000 higher than last month and 1.4% higher than in June last year while the median price at $910,000 was $4000 lower than May’s and 7.7% higher than last June’s.

“Taken in isolation, the month’s trading was very much ‘business as usual’.

“What contributed to the robustness of the market in June was solid new listings at 1582, 56.3% higher than in the same month last year; an influx of first time buyers; and undoubtedly some catch up business from the slow sales in May.

“It is far too early to see this result as an indicator that the property market will defy forecasts and ride out the Covid-19 pandemic unaffected.

“It does suggest that over a three to five year time horizon buyers have confidence in property at today’s prevailing prices and that they are not holding back in the hope of a major decline in values.

“Property which sold at values above $1 million was in demand, with 366 sales, or 44.6% of all sales being in this price segment. You have to go back more than two years (May 2018) to find a month when more $1 million plus sales were made.

“Within this number 46 sales, or 5.6% of all sales, were for properties that sold for $2 million or more.

“At month end, we had 4001 properties on our books, giving buyers their greatest choice of property for 12 months.

“Lifestyle property sales numbers also rebounded during the month, particularly to the south of Auckland in Pukekohe, Tuakau, Pukekawa and Te Kauwhata.

“Vendors have been satisfied with prices achieved and sales have reduced listing numbers to the point we are experiencing short term pressure on stock.”

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