May 2021 Housing Market Update

Housing Market Unmoved By Latest Restrictions

May’s Auckland housing sales data shows no hint that restrictions imposed in March have had an impact on prices or sales numbers.

“Trading in May was excellent, with the median price increasing, the average price being in line with the record price set in April and sales numbers being their highest in the month of May for four years,” said Peter Thompson, Managing  Director of Barfoot & Thompson.

“The market has worked through the implications of the recent changes and continues to trade with confidence.

“The median May price at $1,073,000 was up 2.2 percent on that for April, setting a new record median price and 17.4 percent ahead of last year’s May price.

 “The average price for May at $1,114,011 was right in line with that for April, and 17.5 percent ahead of where it was 12 months ago.

“As we enter the colder autumn and winter months it is not unusual for sales activity to ease back and, if this were to occur, the cause is likely to be seasonal rather than investors reacting to the removal of interest payments as a tax deduction and the extension of the bright line test.

“Sales at 1,197 for the month were 8.1 percent ahead of those for April and comfortably higher than in the pre-covid sales numbers for the same month between 2017 and 2019.

“Although new listings in the month at 1,502 were their highest in a May for four years it did nothing to improve availability, and at month end we had only 3,122 properties on our books. This is the lowest number of properties for sale since January, and our lowest in the month of May for five years.

“110 properties sold for in excess of $2 million in May, the third consecutive month when sales exceeding $2 million have been above 100.

“Sales of property for less than $750,000, at 179, represented 15 percent of all sales.

“Rural and lifestyle property sales also remained unaffected by the new regulations with sales in this sector reaching $95 million, the highest May sales turnover for five years.

“Sales around Kumeu were particularly strong following a lift in new listings while buyer demand for property in the $2 to $3 million price range in Rodney was greater than available listings.

“The Far North continues to attract high interest, particularly for 10 to 25 ha bush blocks with streams.”