Surprise rise in Auckland home sales compared to last month
Home sales in Auckland defied market expectations by rising sharply last month, according to new figures from the city’s largest real estate agency.
There were 1,180 sales in the region in March, up 57.3% from 750 in February and 43.7% from the previous three-month average of 821, according to Barfoot & Thompson.
Sales were down 36% from last March, but agency director Peter Thompson said last March was abnormal and the highest on record for the month of March.
“Compared to sales volumes in March 2020 and 2019, sales this March were higher.
* Buyer-seller stalemate leads to ‘lowest home sales since GFC fallout’ – CoreLogic
* Sales and house prices in Auckland fall as the heat comes out of the market
* The median house price in Auckland jumped by $230,000 in 2021, according to Barfoot & Thompson
“But the sales were in line with what usually happens at this time of year as sellers and buyers return to the market after the summer holidays.”
Sales of apartments, townhouses and bare sections continued to impact the market, with properties valued below $750,000 accounting for almost a quarter (24.3%) of all sales.
In February, properties under $750,000 accounted for 21.5% of sales, while in January that figure was 18.1%.
Figures from Barfoot & Thompson also showed average and median prices in the region rose last month.
The median price was $1.18 million, up 5.1% from $1.12 million in February and 13% from $1.04 million in the same time last year latest.
The average price was nearly $1.24 million, up 3.2% from $1.19 million last month and 11.4% from $1.10 million in March from last year.
Thompson said many market analysts would be surprised by the prices reached because, contrary to economic forecasts, they showed resilience rather than decline.
But people shouldn’t read too much into a month’s trade and the direction prices were heading remained uncertain as, overall, the pace at which prices were rising was decreasing, he said.
“Buyers are more cautious than at the end of 2021, and sellers are reducing price expectations that were based on year-end prices.”
Despite the increase in sales, registrations have increased significantly. There were 1994 new listings in March and at the end of the month there were 4816 properties for sale.
It was the highest number on the agency‘s books in nearly three years, Thompson said.
“This level of listings will ensure buyers not only have a good choice, but it will also give them more time to make measured decisions.”
While the agency’s figures appeared to go against recent forecasts, CoreLogic’s latest house price index showed Auckland prices rose 1.4 per cent to 1.52 million. dollars in March.
But CoreLogic’s head of research Nick Goodall said the increase was not consistent across the region, with prices in South Auckland lower than in other areas.
Manukau and Franklin saw price declines of 0.3% and 0.9% respectively, while central Auckland, including Waiheke Island, and more rural areas of Rodney saw increases of 2 .6% and 2.3%.
Last month, figures from the Real Estate Institute showed that median prices in the Auckland region had fallen around 8% since the peak in November, but different areas had fallen to varying degrees.