PHOTO: Peter Thompson, the Managing Director of Barfoot & Thompson
The Auckland housing market seems to have regained a sense of normality, as property sales in June followed the more typical pre-Covid patterns for the winter season.
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Peter Thompson, the Managing Director of Barfoot & Thompson, acknowledges that the current housing market cycle has been one of the toughest for Aucklanders in recent years. However, he also notes positive signs indicating a shift towards greater stability.
With a total of 711 sales during the month, the market has returned to a level comparable to the pre-pandemic period, marking a 3.9% increase from June 2022 and a recovery from the record low sales in April.
June 2023 Housing Market Update
| Time period | Number of sales* | Total value of sales |
|---|---|---|
| June 2023 | 711 properties | $780,604,658 |
| June 2022 | 684 properties | $792,389,986 |
| 12 months to June 2023 | 7,290 properties | $7,998,001,868 |
| 12 months to June 2022 | 10,689 properties | $12,864,982,210 |
*Includes Barfoot & Thompson Auckland residential sales that have gone unconditional. Excludes Northland and commercial sales.
In terms of prices, the average sales price in June was $1,097,896, showing a 2.5% increase from the previous month and a 1% increase compared to the average price of the preceding three months. Additionally, the median price rose by 4.2% to reach $995,000 compared to May.
When excluding recent price fluctuations, the only meaningful comparison can be made with 2019, the last true market-driven cycle. In this regard, both the average and median sales prices in June were approximately 17% higher than those of the same month four years ago.
The market has witnessed a rise in multiple offers on properties, and auction rooms have seen increased activity throughout the month. While this increased activity has not driven up prices, it signifies a returning confidence, which is promising for both sellers and buyers.
| June | Previous Month | Previous 3 Month Average | June 2022 |
|---|---|---|---|
| Average Price $1,097,896 |
$1,070,819 +2.5% |
$1,086,873 +1% |
$1,158,464 -5.2% |
| Median Price $995,000 |
$955,555 +4.2% |
$991,667 +0.3% |
$1,147,500 -13.3% |
| Sales 711 |
723 -1.7% |
654 +8.7% |
684 +3.9% |
| New Listings 1,266 |
1,262 +0.3% |
1,271 -0.4% |
1,255 +0.9% |
| Month-End Stock 4,277 |
4,390 -2.6% |
4,608 -7.2% |
4,676 -8.5% |
New listings entering the market remained consistent, with 1266 in June, aligning with the expected trend during the winter season. This familiarity provides reassurance amidst the current backdrop and serves as another sign of cautious optimism.
At the end of the month, there were 4277 listings available, offering buyers a wide range of properties across various price brackets.
The high-end market segment demonstrated resilience, with 48 homes sold for over $2 million in June, surpassing May as the second-highest monthly sales figure in this category.
Properties priced below $750,000 also experienced high demand, resulting in 180 sales during the month.
In June, 24 rural and lifestyle properties were sold, indicating a relatively modest number but the third busiest month of trading this year. This reflects a convergence of buyer and vendor expectations regarding fair market value. Moreover, there was increased activity in this sector, with more property appraisals and a higher number of buyers attending open homes.
SOURCE: Barfoot & Thompson
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