Market slow but steady – B&T

Barfoot & Thompson managing director Peter Thompson

Auckland’s largest real estate agency released its May data today and it provides more evidence of the considerably slower pace of the city’s market.

New listings were up and so too were the total number of listings on the market, especially compared to this time last year.

Barfoot & Thompson managing director Peter Thompson said there were 1,734 new listings in May, which an increase of 34.1% as compared to April when there was 1,293 new listings.

However, that figure was a drop of 6.6% on the average number for the previous three months and new listings were also 9% lower than they were in May last year when there was 1,905, he said.

“Total listings at 4,298 were up a little on last month’s but were more than 40% higher than at the same time last year.

“It suggests the price slow-down is not leading to a greater number of people than normal listing their property for sale.”

At the same time, there were 886 sales in May which was an increase of 33.4% on April when there were 664 sales.

But Thompson said that for the first five months of this year sales numbers are down about a quarter on what they were for the same period last year.

Even though total listings were at their highest for the past five years and sales in May were low compared to previous years, prices held steady at a high level.

The average sales price for the month was $942,717 (up just 2.8% on April) and the median price was $846,000 (down 0.5% on April).

Thompson said there is now greater pressure on prices to fall than has been experienced for some years yet the average and median prices have barely moved over the previous three months.

"On a year-on-year basis the average price is now running under 8% higher and the median price is 4.5% higher.”

Top end properties remain in high demand but just 4.5% of properties sold during the month sold for under $500,000, he added.

For ASB senior economist Jane Turner, the Barfoot & Thompson data showed that the Auckland market remains subdued.

She said the gradual fall in turnover has seen the number of houses available for sale rise back to levels not seen since 2012.

“Nonetheless, the number of houses available for sale relative to demand remains below the historical average and consistent with a still-tight housing market, albeit more balanced compared to recent history.”

The recent lift in housing inventory, last year’s LVR changes and marginally higher longer-term mortgage rates are likely to contribute to softer house price growth over 2017, Turner said.

“However, sluggish growth in housing construction relative to population growth, should keep a floor under prices.”

Read more:

Market returning to normal 

Slower Auckland sets trend