May 2023 Housing Market Update

*Includes Barfoot & Thompson Auckland residential sales that have gone unconditional. Excludes Northland and commercial sales.

Eager House Buyers Return To Auckland Market

Eager buyers returned to the Auckland housing market in May, with property sales being their best in a month since May last year.

“After a dismal month’s trading in April, when sales hit their lowest in an April for 22 years, sales of 723 in May were not far off what was being achieved at this time of the year pre-Covid,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“May’s sales are another sign that the Auckland property market has either hit the bottom of the current cycle or is close to it. 

“While both the median and average sales prices for the month eased on those for April, it was the number of sales that is the standout feature with sales being a third higher than the average monthly sales for each of the past three months. 

“It shows buyers are not shying away from paying current mortgage interest rates.

“It is a positive signal that after we ease through the coming winter trading months the market has the capacity to rebound.

“The median sales price for the month at $955,000 is down 4 percent on that for April while the average price at $1,070,819 is down 1.5 percent on that for last month.

“While the median price paid in May was down 15.1 percent on that 12 months ago, the average price was down much less at 10.9 percent.

“Vendors will be encouraged that prices have now reached that point where more sales are being made and support the recent comments by the Governor of the Reserve Bank that house prices are at ‘more sustainable’ levels.

“A good flow of new listings reached the market in May, with 1,262 new listings for the month being close to what we have averaged each month over the previous three months. 

“At month’s end, we had 4,390 properties on our books. While this is our lowest number in 14 months, it still ensures that potential buyers have a greater choice than was available pre Covid days.  

“Once sales numbers start to increase, we can anticipate potential choice will start to decline.

“Buyers have returned to the high end of the market, with 31 homes being sold in May for more than $2 million, the second highest number of monthly sales in this price category this year.

“Sales in the under $750,000 price category were also in demand, with 148 sales being registered.

“The rural and lifestyle markets to the north, south and west of Auckland experienced slow trading at the start of the month but lifted significantly in the second half, delivering a modest lift in sales to 27 properties in May. This is the second best trading month for this calendar year.

“There was a marked lift in vendors seeking property appraisals, and a strong sentiment that the bottom of the market cycle was not far off.”

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, Barfoot & Thompson, by telephone at 09 307 5523 or 027 453 593. www.barfoot.co.nz.  

Released on behalf of Barfoot & Thompson by Network Communication (Dennis Lynch) telephone 021 963 733  Dennis.lynch@networkcommunication.co.nz    

More market reports
Full list of residential sales