PHOTO: Managing Director of Barfoot & Thompson, Peter Thompson. BARFOOTS
The Auckland Housing Market in July: Sales Numbers Up, Prices Showing Some Decline
Positive Indicators in July
Managing Director of Barfoot & Thompson, Peter Thompson, stated that the Auckland housing market performed in line with traditional seasonal expectations during July. The sales numbers were up compared to previous months, while prices experienced a slight dip. Thompson noted that there were several positives to take from July’s data:
- For the third consecutive month, sales surpassed 700, and prices remained stable, suggesting the market has reached a natural plateau.
- Confidence in the current market conditions has been renewed for both vendors and buyers.
- Across all price points, there was a steady increase in sales numbers.
- The market experienced a consistent flow of listings, which contributed to its buoyancy.
As the market transitions from winter to spring and approaches the election period, Thompson believes that large price movements are unlikely.
| ime period | Number of sales* | Total value of sales |
|---|---|---|
| July 2023 | 727 properties | $775,760,186 |
| July 2022 | 611 properties | $685,893,841 |
| 12 months to July 2023 | 7,406 properties | $8,087,868,213 |
| 12 months to July 2022 | 10,065 properties | $12,089,127,421 |
*Includes Barfoot & Thompson Auckland residential sales that have gone unconditional. Excludes Northland and commercial sales.
| July | Previous Month | Previous 3 Month Average | July 2022 |
|---|---|---|---|
| Average Price $1,067,070 |
$1,097,896 -2.8% |
$1,085,194 -1.7% |
$1,122,575 -4.9% |
| Median Price $950,000 |
$955,000 -4.5% |
$981,667 -3.2% |
$1,110,000 -14.4% |
| Sales 727 |
711 +2.3% |
636 +14.3% |
611 +19% |
| New Listings 1,213 |
1,266 -4.2% |
1,206 +0.6% |
1,177 +3.1% |
| Month-End Stock 4,076 |
4,277 -4.7% |
4,312 -5.5% |
4,567 -10.8% |
July’s Performance in Numbers
During July, 727 homes were sold, reflecting a modest increase of just over 2 percent from the previous month and a significant 19 percent rise compared to July 2022. It marked the second busiest month for residential sales in the year, second only to March when 765 homes were sold.
The average sales price in July was $1,067,070, representing a slight decline of 2.8 percent from the previous month. However, average sales prices have remained relatively stable over the last three months, with July’s average being only 1.7 percent lower than the previous three-month average. The median price for July was $950,000, showing a 4.5 percent decrease from June.
Thompson emphasized that when considering current prices, it’s essential to remember that the average homeowner in New Zealand lives in their home for around seven years before moving. Consequently, many of those considering listing their properties in the coming weeks and months likely purchased their homes in 2016, and their property values may have appreciated by around 23 percent during that time.
Listings and Market Activity
In July, there were 1,213 new listings coming onto the market, representing a steady flow, although slightly reduced by about 4 percent compared to the previous month. However, this number was still more than 3 percent higher than the same month last year.
At the end of July, there were 4,076 available listings on the books, the lowest number of available listings since January 2022. Despite this, real estate teams throughout the city reported a significant increase in enquiries from potential vendors as the market looks towards spring.
Price Segmentation
Out of all homes sold in July, 217 were under $750,000, while 10 properties were sold for more than $3 million.
Rural and Lifestyle Market
In the rural and lifestyle market, 20 properties were sold in July. This sector faced challenges in trading due to various factors, including banking decisions on lending. However, there are signs of improvement with increased activity from potential vendors and a rise in enquiries converting to listings, indicating the arrival of spring’s green shoots.