The median price has set a new record
The average price of homes in Auckland exceeded $1 million in October, according to Barfoot & Thompson.
Latest data by Barfoot & Thompson revealed that the average sales price in Auckland residential property reached $1,045,104, and the median price set a new high of $967,000.
“Both are significant milestones in terms of house prices in Auckland and are a reflection of current demand for property and people's confidence in the medium-term future of Auckland property prices,” said Peter Thompson, the managing director of Barfoot & Thompson.
“While there is strong interest in property from first time buyers and investors, the vast majority of homes continue to be bought by existing property owners who are moving forward with their lifestyle decisions in terms of their housing ambitions.”
“For existing homeowners, the financial gap between their present and next home is manageable, and they are taking advantage of low-interest rates to transition to the next stage of their lives.”
Read more: Property market values continue to increase – CoreLogic
Thompson explained that the combination of high new listings and readily available low-interest mortgage finance had led to fierce competition among buyers.
The average price last month increased by 4.8% on that for the previous month, and the median price increased by 4%. On a year-on-year basis, the average price has increased by 11.3% and the median price 14.4%.
“The number of property sales in the pipeline agreed, and awaiting completion is extremely strong, and this will ensure that property sales numbers through to year-end will remain high,” Thompson said.
“Property sales for more than $1 million accounted for 49.5% of all sales in October. Until recently, they accounted for about a third of monthly sales. Sales for more than $2 million are no longer an exception, and in October, we sold 102 homes in this price category, representing 7.7% of total sales, he continued.
“Conversely, 4.5% of sales were for properties that sold for under $500,000. At month-end, we had 3,925 properties on our books, the highest number in four months and 2.7% higher than at the same time last year.”
