Property prices in Auckland, New Zealand, continued to increase in November, according to Barfoot & Thompson, although firm analysts note that the month is the busiest seasons for property sales. Average prices climbed 3.2% for the month while the median price increased 5.3%, although sales numbers fell from the previous month. Fewer sales were made at auction, which may indicate stiffness in negotiations, but similar problems were not seen at the high end of the spectrum as analysts recorded the sale of 189 homes valued at more than $1 million. For more on this continue reading the following article from Property Wire.
The average property sales prices in Auckland, New Zealand’s most populous city, increased by 3.2% in November compared with the previous month, the latest data shows.
But the fact that November is one of the busiest months for property sales needs to be taken into account, according to Peter Thompson, managing director of Barfoot & Thompson.
He also pointed out that if the Reserve Bank restrictions on mortgage lending are to have an impact on the Auckland housing market, they are yet to show up in housing activity or sales prices.
‘November was yet another busy trading month with the average sales price rising to $684,646 while the median price increased by 5.3% to $621,400,’ he explained.
‘What has to be factored into November’s sales figures is that it is traditionally one of the strongest trading months of the year, particularly for high end homes. In November we sold 189 homes for in excess of $1 million, our highest monthly number ever,’ he added.
He also pointed out that overall, November was less active than October and what may have occurred in October was a rush of activity in anticipation that change was about to happen, with people determined to get their property intentions sorted ahead of that change.
Also sales numbers in November at 1,118 were down 7.1% on the numbers for October. However, they were higher than the number sold in September, and also in line with the number sold in November last year.
‘In terms of house values and turnover, November represented a solid month’s trading with numbers and values unaffected by any changes that the trading banks imposed. This comes as no surprise as structural changes of the type being sought by the Reserve Bank can take many months to flow into the system. If change does occur, it is likely to be towards the end of the first quarter of 2014 before its influence is felt,’ explained Thompson.
‘The one segment of the market where potential change may be occurring now is in the sale of homes under the auction hammer. There has been a reduction in the number of homes sold under hammer on the auction floor, but sales have been occurring later following negotiations between the parties,’ he said.
‘This may well be a sign that buyers do not have the same flexibility as previously, and are looking to get confirmation from their bank before completing the purchase,’ he added.
In November the firm sold 370 homes for under $500,000, with strong activity in south and west Auckland. While this number is significantly lower than the 457 sold in October, it is in line with the number sold in September, Thompson pointed out.
He also said that new listings for November were 1,665, some 17.4% down on those for October which was an exceptionally high month, and they were still the fourth highest for any month this year.
This article was republished with permission from Property Wire.