Market slowing, Barfoot says

Barfoot and Thompson reported an average sales price for the month of $702,966, 1% down on April’s average.

Turnover was down 14% on May 2013.

Managing director Peter Thompson said: “New listings at 1318 were the lowest in three months, and down 19%  on those in April. At the end of May we had 3498 properties on our books, the second-lowest number in May for more than 10 years.”

He said: “It is by now a well-worn story; Auckland remains a city with a greater number of people chasing fewer properties.  Those properties that are priced sensibly to meet the market are selling quickly. “

Vendors are still opting for auctions, he said.  Barfoot and Thompson reports a success rate of 80% within seven days of an auction.

“This is because we are experiencing a trend towards properties that are passed in at auction either selling later the same day or within seven days of the auction. “

Thompson said he expected the market to slow further.

“Overall the market is in line with seasonal activity, and we are likely to see further cooling with average and median sales prices falling back slightly over the winter months.”

The median sales price for May was $645,000, up 4% on April.

During the month Barfoot and Thompson sold 188 properties over $1 million, and at the other end of the spectrum, 343 sold for less than $500,000.