Barfoot & Thompson posted some mixed results in April, with sales volumes at a four year high while prices were in decline and total stock levels hit a 17 year high.
The real estate agency, which is the biggest in the Auckland market, sold 842 residential properties in April, which was up 19.6% on April last year and the best sales result the agency has achieved in the month of April since 2021.
However, prices headed in the opposite direction.
April's median selling price was $934,000, down by $36,000 compared to March (-3.7%) and down by $73,500 (-7.3%) compared to April last year.
That was the lowest median selling price in the month of April since 2020.
The average selling price was $1,110,689 in April, down by $34,356 (-3.0%) compared to March and down by $102,139 (-8.4%) compared to April last year.
Barfoots received 1578 new listings in April, almost unchanged from the 1580 it received in April last year.
However the total number of residential properties available for sale by the agency remained elevated at 6113 in April, which was the most properties the agency has had available for sale at the end of April since 2008, putting stock levels at a 17 year high.
That is a particular concern as the market leaves behind the more buoyant summer months and heads into winter.
Barfoot & Thompson Managing Director Peter Thompson said sales slowed in the early part of April when talk of tariff trade wars reached its highest, but rebounded quickly toward month's end.
But prices were weaker.
"From a price perspective, the market showed no signs of lifting," Thompson said.
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11 Comments
Median prices down, already bloated inventory still getting force fed. Indications are this long overdue adjustment will endure for some time to come. The adjustment looks even more stark when adjusted for inflation too.
Personally, for reasons that have been well trodden upon here, I think this is fantastic news.
Agreed.
March: The housing market recovery has arrived!
“The long-anticipated housing market recovery finally arrived in March,” said Peter Thompson, Managing Director of Barfoot and Thompson.
April: Just kidding!
“From a price perspective the market showed no signs of lifting, with prices in April drifting downwards with the median price at $934,000, being down 3.7 percent on that for March, and the average price at $1,110, 689, down 3 percent.”
It is his job to spin a positive angle, but in the face of unfolding truth looking like porky pies.
It just exposes the ugly reality that increased sales equals increased commissions, what you get paid as a vendor doesn't matter as long as sales are up! Its a recovery in RE agents commissions that the industry is crowing about.
They have been trying to signal that there are buyers waiting for ages, seems like vendors now waking up to what it takes to get a sale i.e. meet the market. Funny they where telling buyers that during the boom.
Anyone who understands markets can see how this unfolds into summer.
Wow only 1 sold for every 2 new listings in April
(842 sales, 1578 new listings)
Vendors need to lower their expectations and asking prices or they won't sell
As usual I read comments first and then went back to read some article.
David and others , I had an idea.
Why not do a 5 point summary of article under the headline with the main points?
I think it would help inform the comments a bit for those who don't read the text
- Amidst new uncertainties about the world economy and plentiful evidence of high numbers of properties for sale, buyers have stepped back from the market, feeling strongly that time and negotiating power are both on their side.
- FOMO has returned to levels before monetary policy began easing and on average agents feel house prices are falling around the country.
- There are now more agents seeing declining numbers attending Open Homes and auctions than report they are seeing more people.
It sounds like theres another bottom on the horizon 🍑
Thanks. I have started to run any report longer than 10 pages thought Perplexity or similar engine and then ask it to summarise.
In theory a good exec summary should do that but they tend to get word smithed and can often have a different emphasis or slant to the underpinning report .
It's also good to upload a draft and final report to see where the changes have happened
The only headline you need is
April's median selling price was $934,000, down by $36,000 compared to March (-3.7%) and down by $73,500 (-7.3%) compared to April last year.
That was the lowest median selling price in the month of April since 2020.
The average selling price was $1,110,689 in April, down by $34,356 (-3.0%) compared to March and down by $102,139 (-8.4%) compared to April last year.
Given such strong sales numbers the price moves are not outliers. The recovery is here!
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