House prices fell but sale numbers rose in Auckland in July, Barfoot & Thompson managing director Peter Thompson said on Friday.
Describing it as “a modest but definite shift”, Mr Thompson said: “The modest fall in both average & median prices in the month was enough to unlock sales numbers, with July sales being their highest in the month of July for 3 years. For the previous 3 months sales numbers were more subdued, with prices tending to edge higher.”
The average sale price fell $12,000 in July from the average over the previous 3 months, and the median fell $41,000. Mr Thompson said one outcome was that more sales were conditional on buyers selling their own property first.
Barfoot home sales rose 11.8% from June to July, and were up 5.9% on a year ago: “It is a positive sign that the Auckland market is getting through the traditional winter downturn in better shape than in the previous 2 years.
“Another positive sign was new listings for the month, at 1154, being well ahead of those for June (up 14%) & those for July last year (up 9.2%).
“A feature of July’s sales was the relatively high number of sales in the under-$500,000 price category, which at 15.9% of sales was significantly higher than we normally see. It points to the higher number of apartment & terrace housing sales showing in the monthly statistics, and the growing acceptance in Auckland of this form of housing.
“It can be anticipated that this growing sector of the market will continue to impact on the average & median sales prices being achieved.
“Sales of property in the $1 million-plus & $2 million-plus sales category combined made up 28% percent of all sales in the month. These price categories regularly make up a third of all sales.
“At month end we had 3864 properties on our books, the lowest number for sale in the past 17 months.”
Attribution: Agency release.