PHOTO: Peter Thompson, Managing Director of Barfoot & Thompson. BAFOOT & THOMPSON
In October, the Auckland housing market saw encouraging signs of recovery as restrictions on prices began to ease. Peter Thompson, the Managing Director of Barfoot & Thompson, noted that while the growth was moderate, it was widespread. The month witnessed a surge in new property listings, increased sales figures, and a noteworthy milestone: both the median and average sales prices exceeded $1 million for the first time since March.
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Throughout August and September, positive indications hinted at a market turnaround, but October marked a definitive shift towards recovery. Sellers returned to the market in force, with a remarkable 1,829 new listings for the month, a 25% increase from September and a 33% increase from the same period last year. Buyers also displayed a strong commitment, with 846 sales recorded, marking the highest October sales in three years and a one-third increase from the previous year.
The constraints of rising interest rates and economic uncertainties that had restrained prices seemed to loosen, as the median price reached $1,011,250, the highest in the past seven months, reflecting a 2.5% increase from September and a 1.8% rise from the average of the past three months. The average price, at $1,090,724, hit a four-month high, showing a 3% increase from September.
An interesting trend observed in October’s sales was the heightened interest in properties within the $1 million to $2 million price range. While this segment consistently had the highest number of sales, it accounted for 54% of all sales in October, marking the first time this year that this price category represented more than half of all sales. Sales in this range are especially sensitive to mortgage repayment levels, suggesting that those taking on debt at current interest rates are confident that prices will likely continue to rise.
Properties selling for more than $2 million constituted 6.6% of all sales in the month. At the end of October, there were 4,564 listings available, offering buyers a wide selection of properties to choose from.
Regional areas to the north, south, and west of Auckland experienced a similar surge in new listings, but sales activity remained subdued. However, buyer interest, including inquiries and viewings, increased in these areas, particularly in the latter part of the month. Both sellers and buyers showed increased flexibility and willingness to reach agreements, raising expectations that the rural and leisure markets in these regions would soon experience heightened sales activity.
| October | Previous Month | Previous 3 Month Average | October 2022 |
|---|---|---|---|
| Average Price $1,090,724 |
$1,058, 771 +3% |
$1,071,433 +1.8% |
$1,136,982 -4.1% |
| Median Price $1,011,250 |
$987,000 +2.5% |
$973,000 +3.9% |
$1,092,500 -7.4% |
| Sales 846 |
825 +2.5% |
810 +4.4% |
627 +34.9% |
| New Listings 1,829 |
1,469 +24.5% |
1,420 +28.8% |
1,371 +33.4% |
| Month-End Stock 4,564 |
4,192 +8.9% |
4,141 +10.2% |
4,743 -3.8% |
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