High listings and modest price adjustments in February
The Auckland housing market maintained its calm pace in February, closely mirroring the sales figures and price levels of January.
“February’s trading was typical of what we have experienced over the past three years at the start of the year,” said Peter Thompson (pictured), managing director of Barfoot & Thompson.
This pattern reflects a consistent start to the year, where January’s holiday activities heavily influence the outcomes of February’s market performance.
Record sales amid price adjustments in Auckland
Despite February’s transaction numbers being the highest recorded for the month over the past three years, they showed a slight decrease from January’s figures.
The median house price experienced a minor adjustment, decreasing by $20,000 to $930,000, whereas the average price witnessed an increase of $54,000, bringing it to $1,107,006.
“It will not be until March that any uplift attributable to recent declines in mortgage interest rates are likely to influence sales activity,” Thompson said.
Auckland’s real estate sees significant inventory increase
The month saw a robust number of new listings, totaling 2,073, which included a mix of new builds and occupied dwellings.
By the end of February, the inventory had reached 5,997 properties, marking a 14-year high.
The surge in Auckland’s property listings, driven largely by new constructions, occurred despite relatively modest homebuilding cost increases of 39.4% in the city, the lowest among major New Zealand cities but still the highest overall building costs.
Affordable units and luxury homes show strong sales
The more affordable segments of the market, specifically properties priced under $750,000, accounted for a quarter of the sales for the second consecutive month. This segment’s performance highlighted the increasing proportion of townhouses and apartments in Auckland’s housing mix.
In contrast, high-end properties priced over $2 million comprised 5.4% of the sales, following a trend where the luxury property market saw robust demand for homes priced above $2m in 2024.
The rural and lifestyle markets around Auckland also showed steady activity, matching the sales levels from the previous year with total sales reaching $44m.
Anticipating shifts in Auckland’s housing market
As additional data from net exports and public demand become available, they will provide further clarity and potentially refine the GDP forecasts, offering insights into the broader economic influences on Auckland’s housing market.
Stakeholders are closely monitoring these indicators to gauge the potential shifts in market dynamics as the year progresses.
Read the Barfoot & Thompson Auckland report.
