February 2020 Housing Market Update

Exceptional Sales Numbers Have Limited Impact on Auckland Property Prices 

The Auckland property market burst into activity in February, but not at the expense of stable prices.

“Sales numbers in the month at 804 were exceptional and the highest in the month of February for five years but the prices at which properties changed hands were in line with where the market has been for the past few years,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Both the average and median prices declined markedly from the level they have been at over the past three months but were in line with those being paid at this time last year.

“Stable prices were a major factor in why so many sales were made in the month.

“The prices buyers were prepared to pay met vendors expectations, and our clearance rate of properties at auction, and by direct negotiation, were close to the numbers we were selling at the height of the 1990s property cycle.

“Another factor contributing to the average and median prices remaining stable was the growing influence of apartment sales. In February sales of properties for under $500,000 represented 16 percent of all sales. In January sales of under $500,000 properties accounted for 4.7 percent of sales.

“There is every indication that the excellent start the market has made to the year will flow into March, which traditionally is the best sales month in the first half of the year.

“There are no early signs that the spread of the coronavirus is having an impact on property sales but this is expected, as property sales tend to take place over a 30 to 60 day period, and any signs that the virus might have on market activity is unlikely to appear before April’s trading results.

“The average price for the month at $920,553 was down 3.3 percent on that for January but only 0.2 percent higher than the average price in February last year.

“The median price at $820,000 was down 7.3 percent on that for January and 2.4 percent higher than last February’s.

“Another factor contributing to the high number of sales was the excellent level of new listings that came to market. At 1,640 this was a 50 percent increase on the average number for the previous three months. 

“At month’s end we had 3,670 properties on our books. This is a modest increase on where we have been at for the previous three months but still 990 properties down on where we were at this time last year.

“Properties in the $1 million and $2 million plus price categories in February were significantly ahead of where they were last February and accounted for 30.8 percent of sales.  

“The rural and lifestyle property markets also experienced excellent trading results in February with sales being double what they were in February last year.

“To the south of Auckland and around Pukekohe, there was strong competition for lifestyle properties in the $1 million plus price category. To the north of Auckland, lifestyle listings around the Albany, Coatesville and Riverhead areas are low, and record numbers of people are being attracted to view new listings.”

Barfoot & Thompson knows Auckland best. It is the city’s leading real estate company, selling around one in three Auckland residential homes, significantly ahead of all other competitor brands. For further information, contact Peter Thompson, Managing Director, telephone 09 307 5523 or 027 453 5931. www.barfoot.co.nz