Market gains momentum, says expert
Signs are emerging that a recovery in Auckland’s housing market could be on the horizon, as reflected by the strong number of property sales and the prices achieved in August.
August saw a quiet but growing confidence in Auckland's residential housing sector. Both sales and listings exceeded the usual expectations for the end of winter.
“All indications point to the subtle confidence we have seen return to the Auckland residential housing market in the past few months continuing to grow as we enter spring,” said Peter Thompson (pictured above), managing director of Barfoot & Thompson – a key player in the Auckland real estate market.
The comments come as sentiment improves after Auckland showed a minor month-on-month increase in its average asking price for the first time since April, according to the latest data from realestate.co.nz.
While the market hasn’t broken any records during the last month of winter, Thompson said it has continued to display welcome markers of sustained confidence with sales and listings performing well, and prices remaining stable.
“It’s this solid reliability that has laid the groundwork for a promising spring and summer."
Market gaining momentum
The market appears to be gaining momentum, suggesting that the most difficult period could be in the past.
“Unquestionably, the market is stirring, and there is every reason to believe the more challenging times are behind us," added Thompson.
In August, 889 properties were sold across Auckland, marking the highest sales for the month since 2021. Additionally, there were 1,454 new listings, the second-highest for any August since 2017.
“The median sales price in August was $952,500, marginally lower than July’s median price, and 3.1% lower than the same month last year,” he said.
The average sale price for August was $1,107,837, showing a slight dip of 1.6% compared to July, but nearly a 2% increase compared to August 2023.
“We are coming into a new season in a market where vendors and buyers have reached a consensus that the market is stabilising price-wise, and the more mortgage interest rates ease back, the more active the market will become," Thompson said.
Sales trends mirror July
The sales trends in August closely mirrored those of July, showcasing the diverse range of properties available in Auckland.
“Exactly mirroring July, and a reflection of the wide variety of property currently available across Auckland, during August 22.3% of the property sold was under $750,000, while sales in the $2 million plus price segment accounted for 5.2% of sales," Thompson said.
The rural and lifestyle property market also saw notable activity in August, with total sales reaching $56 million, making it the second busiest month of the year.
