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The Auckland housing market experienced a typical end of winter sales month in August, but prices went against the normal trend by holding firm.
“The Auckland market in August showed signs that it may be nearing a tipping point,” says Peter Thompson, managing director of realtors Barfoot & Thompson.
“Buyers are there and interested but are yet to be convinced that the upward price cycle is about to commence.
“They’re still waiting for confirmation the long-awaited return of rising prices is about to get under way. It remains a solid buyers’ market, but there are signs that prices are hardening.
“The median sales price for the month, at $955,000, was up marginally on that for July and the highest it has been for the past three months.
“August’s median price was $15,000, or 1.6 per cent higher than June’s median,” says Thompson. “It’s unusual for the median price to be higher in the last month of winter than the first month of the cold season. It was also 0.5 per cent higher than August’s median price last year.
“It’s a solid benchmark price from which to start the arrival of the spring selling season, and a small but welcome signal to vendors that a reversal may be in the wings.”
Thompson says the average price for the month at $1,098,487 continued to sit comfortably above $1 million.
It was also 1.6 per cent higher than August’s average price last year.
“Sales were spread evenly across all price segments during the month, with 5 per cent of sales being for more than $2m. We sold 787 properties in August. Although the second lowest number of sales in a month this year and down 6.9 per cent on July’s sales, it’s unusual for prices to rise or hold firm when sales volume declines.
“New listings for the month at 1456 remained healthy, and month-end listings at 5870 were in line with listings at this time last year.
“Sales turnover in the rural and lifestyle markets in the upper North Island experienced a quiet month’s trading with turnover being slightly in excess of $36m, in line with July’s trading,” says Thompson.
