Election making buyers wary: B&T

The number of sales recorded by the agency fell 7.5% in August to 909, and 12.9% over the past three months. Turnover was down almost a quarter compared to August 2013.

The average sales price was down 1.1% to $711,768 compared to the month before but up almost 10% on the same time a year earlier.

“With new listings for the month at 1129, a decline of 19.1% on those for July, August was a quiet month in terms of activity,” said Peter Thompson, the company’s managing director.

“This was not unexpected as the market invariably goes quiet in the build-up to general elections. Buying or selling a house represents a major financial decision, and without certainty people put that decision on hold. It means the normal lift in market activity we see with the approach of spring is still some weeks off.”

He said market certainty would return after the election and the last three months of the year would be busier than normal.

“New listings for the month were the lowest since December 2013, and the lowest in an August for four years. The same trend was there for sales numbers, with August’s sales being the lowest for four months, and the lowest in an August for three years. The average sales price was stable, and has moved around in a $17,000 band between $719,000 and $702,000 for five months.”

Thompson said the busiest sector of the market was homes selling for less than $500,000. That price bracket has taken a hit since the introduction of LVR restrictions. But in August a third of the homes sold went for less than $500,000.

“Sales in the million-dollar-plus price segment fell 11.8% in the month to 149, the lowest for four months.”

Westpac’s economists said people might also be waiting for their updated council valuations.