While these values have eased back on those achieved during last November and December, this is part of the normal seasonal trading pattern, according to Peter Thompson, managing director of Barfoot & Thompson.
The firm’s data shows that new listing were up 4.1% in January compared with the same month last year and up 4.5% on December 2013.
He also pointed out that almost 100 homes worth in excess of $1 million were sold which is exceptionally high for the first month of the year.
‘All the indications are that the market is building to being extremely active during the first quarter of the year. January’s sales numbers at 854 are the highest in a January for six years,’ explained Thompson.
‘The average sales price for the month is up 7.7% on that for January last year, but down 7.6% on December’s, which itself was the highest average price ever achieved in a month,’ he added.
He also pointed out that buyer interest was not restricted to the top end of the market. During January the firm sold 334 homes for less than $500,000, or 39.1% of all the homes sold.
‘This is the highest percentage of total sales since the Reserve Bank restrictions on bank mortgage lending were imposed, and indicates a little more flexibility on behalf of the banks towards low deposit borrowers,’ Thompson said.
‘At the end of January we had 3,371 properties listed, the lowest number in a January in more than 11 years. While this number is relatively healthy compared to many months in 2013, to be this low at the start of a year will inevitably increase pressure on prices over the next three to four months,’ he explained.
‘Between now and May is normally one of the two high seasons in a year for house sales, and this strong start to the year suggests that the activity levels of 2013 will remain with us,’ he added.
