The market maintains its momentum since August
The Auckland housing market wrapped up 2023 on a strong note, maintaining the momentum gained since August.
Peter Thompson (pictured above), managing director of Barfoot & Thompson, said December witnessed a robust finish, setting the stage for a positive start to 2024.
“The median sales price at $1,045,000 was the highest for any month for 12 months, and 9.5% higher than at the year’s low point in July,” Thompson said in a media release. “It was also up 2.7% on November’s median price.
“The median sales price over the last four months of 2023 increased by 3.9%. Sales in December at 830 were excellent for a three-week month, and nearly 60% higher than in December the previous year.”
While prices increased steadily since August, the rise was gradual, with buyers exhibiting selectivity and price consciousness.
“Sales numbers in the last quarter of the year are far higher than in the same period last year and are similar to trading patterns experienced prior to the big surge in activity in 2020 and 2021,” Thompson said.
“The average sales price for the month at $1,191,031 rose 0.4% in December, and the rise over the past four months has been 7.1%.”
The consensus anticipates continued modest growth in prices and sales.
“New listings for December were 666, and we started the new year with 4,383 properties on our books,” Thompson said. “Apart from last year, this is the highest number of listings we have started the year on for more than a decade, giving buyers an excellent range of properties to view.”
He said the average year-on-year declines in both median and average prices indicated that by the edd of 2023, the market had regained a portion of the losses incurred during its peak in November 2021.
“The average 12-month median price for 2023 was $998,500, a decline of 10.6% on 2022’s all-time high average of $1,117,000 and a 9.4% decline on that for 2021,” Thompson said.
“The 12-month average price performed even better with 2023’s value of $1,104,000, being a decline of 6.1% on 2022’s all-time high average of $1,176,000 and down 4.2% on 2021’s price.”
The market’s growing confidence also influenced rural and lifestyle markets in Northland and the areas surrounding Auckland, with December sales exceeding $56 million, a 69.7% increase from the previous year.
The southern region experienced high demand for rural and lifestyle properties, while the northern areas saw an elevated number of appraisals at year-end.
“Rural and lifestyle property to the south of Auckland was in heavy demand, while in the north we undertook a far higher number of appraisals than is normal at year end,” Thompson said.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
