Sales slump to worst in 12 years

The agency sold just 627 residential properties, compared to 814 properties in October last year and 1,319 in the same month in 2020.

It was the fifth consecutive month, Barfoot & Thompson’s monthly sales have been at 10-year plus lows.

New listings rose 1,371, up 5.3% above September’s but were down 31.9% on last year’s October listings.

However, buyers will still have plenty of choice as the agency had 4,743 listings at the end of October, the most it has had for five months.

Prices have fluctuated and the agency’s median sale price for October sat at $1,092,500, consistent with where prices have been at for the past three months. This was $28,000 higher than last month’s median price, but $57,500 lower than in October last year.

While it represents a fall of 14% on the all-time high residential median price in November, it has now stayed within a 4% range for the past four months.

Barfoot & Thompson managing director Peter Thompson says there are modest improvements in the market. “This represents a degree of confidence returning to a market that has been under price scrutiny and rising mortgage interest costs for much of the year.”

Buyer interest is focused on the under $2 million market. At prices above this, buyers and vendors are still looking to find common ground around property values.

Last month the agency sold 37 homes for more than $2 million - 5.9% of sales - and the lowest number in the price category for more than two years.

The focus on sales under $2 million contributed to the average sales price for the month being $1,136,982, a decline of 2.4% percent on September’s average.

October’s average price was down 11.1% on December’s all-time peak average price. “While rising mortgage interest rates are proving a deterrent, buyers are recognising opportunities at current prices,” says Thompson.