April 2022 Housing Market Update

House Price Decline Shows Up In April Sales

The decline in Auckland residential property prices that has been predicted following the rise in the rate of inflation and mortgage interest rates has finally shown up in sales figures.

“The median and average sales prices in April fell back when compared to those in March, and those for the previous three months, but remained well ahead of the prices of property 12 months ago”, said Peter Thompson, Managing Director of Barfoot and Thompson.

“The monthly median price at $1,141,000 was a fall of 3.3 percent and the average price at $1,212,376 was a fall of 1.8 percent.

“When compared to the average prices paid over the previous three months, the median price in April fell 1.7 percent and the average price fell 0.7 percent.

“The greatest impact the changed economic conditions had on the property market in the month was on the number of property sales, which at 615 was 47.9 percent below those for the previous month.

“Buyers are now showing a greater reluctance to meet vendor expectations.

“For vendors, the positive news is that the prices at which sales are being made are still well in excess of those prevailing 12 months ago.

“April’s year-on-year median price is 8.7 percent ahead of that in April last year and the average price is up 8.8 percent.

“Vendors who have an open mind as to the value of their property are the ones who are more likely to achieve a sale in the new environment into which the market is heading.

“New listings for the month at 1302 were down a third on those for last month but are in line with the numbers normally listed in April.

“It brought our month-end stock number to 4845, the highest it has been for more than three years.

“With buyer choice remaining excellent and economic conditions unlikely to alter in the short term, to be successful in coming months vendors will need to focus carefully on their price expectations.

“The sale of property at the top end of the price range remained strong with 85 properties (14 percent of all sales) being sold for more than $2 million, with 20 of that number selling for more than $3 million.

“The rural and lifestyle markets experienced a quiet month’s trading with buyers and vendors adjusting their expectations as they sought to agree sales terms.

“There are buyers in all sectors of the rural and lifestyle market, especially at the top end, and quality bare land remains in high demand.

“Sales at $56 million for the month were the lowest they have been for a month in this sector since September.”