Sales slowing in the Auckland property market in New Zealand

Sales in the residential property market in Auckland were low in May compared to previous years but prices have not fallen as expected, the latest data shows.

The average sales price of a home for the month was $942,717 and the median price $846,000, both having hardly moved over the last three months, according to the figures from agents Barfoot & Thompson.

According to the firm’s managing director Peter Thompson the market is not attracting more people than normal to put their property on the market. ‘With a sound number of new listings, total listings at their highest for the past five years and low sales, there was greater pressure on prices to fall than has been experienced for some years,’ he said.

‘However, the average and median prices achieved have barely moved for both over the previous three months. On a year on year basis the average price is now running under 8% higher and the median price is 4% higher, Thompson explained.

‘“For the first five months of this year sales numbers are down about a quarter on what they were for the same period last year. Those vendors that are achieving a sale are those that accept prices are flat, and are likely to remain that way until the September election is behind us,’ he pointed out.

The data also shows that new listings were down 6.6% compared to the average number for the previous three months and 9% lower than they were in May last year. However, they were a third up on those for April.

‘It suggests the price slowdown is not leading to a greater number of people than normal listing their property for sale. Total listings were up a little on last month’s but more than 40% higher than at the same time last year,’ Thompson said.

He added that top end properties remained in high demand accounting for 38.5% of all properties sold in May reaching more than $1 million, and of these 6.5% of properties sold did so for more than $2 million. Some 4.5% of properties sold were for under $500,000.