New rules aim to deliver more sustainable market
The government launched a new housing package in March to deliver a more sustainable housing market and support first-home buyers (FHBs) into homeownership by increasing housing supply and removing incentives for speculators – but is it working?
Barfoot & Thompson noted excellent trading in April in Auckland – with prices edging slightly higher, stronger sales, and a solid level of new listings.
Peter Thompson, the managing director of Barfoot & Thompson, said some experts would conclude that the new housing package barely impacted the market. By contrast, others would see signs that the changes are slowly having their intended impact.
“April’s trading was down on that in March, but what needs to be remembered is that there is always a seasonal downturn in trading in April from March, and the trends seen this year are similar to those experienced every year for the past 10 years,” Thompson said.
Barfoot revealed that the average sales price for April at $1,114,054 was 0.6% higher than in March, and the median price at $1,050,000 was 0.2% higher. In effect, prices remained constant. Sales numbers at 1,107 were also down by 40% on those for March, but were the highest they have been in an April for 19 years.
Meanwhile, new listings for the month were 1,675. While numbers dropped by 21.7% on those for March, they were down 7.9% on the number that Barfoot averaged over the previous three months. The figures suggested no major influx of new listings from investors abandoning the market, Thompson said.
“At month end, we had 3,335 properties on our books, our lowest number of properties at the end of April for five years,” Thompson added.
“Overall, the market is continuing to trade strongly. There is still a high level of uncertainty as to future direction, and this sentiment is likely to remain until any announcements about housing in May’s budget are absorbed.”
Land for development and subdivision remains in demand, while strong interest continues for dairy and horticultural farms, according to Barfoot.
“Top end property continued to be in high demand during April with 113 sales, or 10.2% of all properties, being sold for more than $2 million,” Thompson said. “For the second consecutive month, our rural and lifestyle property sales exceeded $100 million.
“The high level of sales achieved in the first quarter of the year sees the lifestyle and rural sectors short of quality listings. Buyer enquiry has eased back on where it was at the start of the year but remains active.”
