Barfoot & Thompson managing director Peter Thompson said yesterday “a typical, solid December’s trading” had confirmed that Auckland residential property prices had stopped rising.
“December’s average sales price at $913,709 and the median price at $840,000 were both down for the second consecutive month.
“It was a typical December trading period, with sales numbers & new listings in line with those for the previous year, and prices being not far off the record prices of October & November.
“Signs that the rate at which prices were increasing was declining have been there since mid-year, and that decline showed in the prices achieved at year end. In December, the average price declined by 2% when compared to the average price for the previous 3 months. For the median price the reduction was 1.8%.
“While prices definitely eased, there was certainly no suggestion that current prices are under any great downward pressure and normal sales numbers are being achieved.”
Mr Thompson said the modest December retreat was similar to what happened in December 2015. On that occasion, it took until March for the upward price trend to reappear.
“New listings at 776 were the lowest in a month for the whole year, but were the highest in a December for 5 years.
“Year-on-year, the average sales price increased by 8.6%, the lowest for 4 years. It compares with 13.9% in 2015, 10.3% in 2014 and 11.1% in 2013.
“For the median price, the 2016 increase was 8.9% compared to 17.4% in 2015, 11.1% in 2014 and 12.6% in 2013.
“At year end we had 3270 properties on our books. While this number is down on those at the end of October & November, it is the highest number at year end for 4 years, and more than a third higher than it was at the same time last year.
“Sales of million dollar properties remained strong in December, with sales in this price category at 282 representing 39.1% of the month’s sales.
“Sales of properties for under $500,000, at 52, represented 7.2% of the month’s sales. Throughout the year, 11.1% of all the properties we sold were for under $500,000.”
Attribution: Agency release.