Barfoot & Thompson's March sales were the weakest they have been for the month since March 2010 and both the average and median selling prices of residential properties sold by the agency were down on March last year.
Barfoot sold 1064 residential properties in March, well up from the 665 it sold in February but down compared to March last year when it sold 1110 and well down compared to March 2016 (1341 sold) and March 2015 (1597).
March is usually Barfoot's busiest month of the year for sales which are typically around double those of February, but this year its sales in March were the lowest they have been for the month since 2010.
The average selling price in March was $931,292, up from $919,454 in February but still well below the peak of $968,570 set in March last year.
The median selling price was $860,000 compared to $820,000 in February and $900,000 in March last year.
At the same time the total number of homes the agency has available for sale is steadily increasing.
Barfoot had 4814 homes available for sale at the end of March compared to 4648 in February and 4413 in March last year.
That was the highest level of inventory Barfoot has had on its books in the month of March since 2011.
That was in spite of the fact that the new listings declined in March to their lowest level for the month since 2013, dropping to 1689 for the month compared to 1747 in February and 1983 in March last year.
Barfoot & Thompson managing director Peter Thompson said the choice for buyers was the second highest it had been in any month of the year for the last five years, beaten only by November last year, which pipped March's inventory levels by 24 homes.
"March sales figures are always strong compared to the holiday affected trading periods of January and February, " Thompson said.
"It is no surprise therefore that March sales numbers and prices are significantly higher than in the first two months of the year.
"What the sales figures underline, however, is that prices remain rock steady and that buyers have re-entered the market," he said.
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61 Comments
What does that mean? People do not bring bags of foreign cash into NZ. Are you trying to refer to some kind of carry trade phenomenon? Why is there no inherent risk with NZD? If you were interested in these things, you would realize that the risk most definitely exists.
The migrants with deep pockets you speak of are but a minority out of the thousands who move here every year. The ones that bring labour capital mostly do so to escape economic upheaval and low standard of livings back home; they are less likely to buy a house in the near future than an average 15-year old NZer.
Statistically speaking, a bulk of our migrant labour practice trades (in the low-paying tourism, agriculture and hospitality sectors); doing jobs where you do not qualify for a home loan.
Xingmowang
Absolutely correct NZ is seen extremely favourably overseas & the $NZ a safe stable currency
The higher interest rates in NZ attract foreign currency along with political & economic stability
When you look at the UK with Brexit & the US with Trumpism there’s little wonder when there’s a sharp shock
money finds its way to NZ Switzerland Singapore to name a few
Absolutely correct NZ is seen extremely favourably overseas & the $NZ a safe stable currency
Relative values of AUD and NZD fell more than any other currencies among OECD countries during the GFC because both currencies are speculative (carry trade) currencies. CHF and JPY appreciated accordingly.
You don't know what you're talking about.
Yes that’s why I’m living a life you cannot afford
I’m merely quoting Robert Prechter Jnr from his book where he states countries that are “Safe Havens” should there be world collapse. Here is today’s link to his organization. https://www.elliottwave.com/Stocks/R-I-P-Bull-Market-What-the-Throw-Ove…
I don’t recall Aucklands leafy suburb properties declining anything like in the USA during the GFC
I also note that NZs banks were relatively stable albeit Mr Key did step in to help ASB obtain foreign funds during the GFC
Now again J.C. loved your little nip !
P.S. Wouldn’t overseas currencies buy more Kiwi dollars when the $NZ was low ? Think macro not micro thinking J.C.
Here’s the answer to Aucklands affordable housing problems ;
https://www.nytimes.com/2018/03/26/world/asia/hong-kong-housing-crisis-…
Bigger pipes for the Auckland affluent could be stacked for true multi pipe living
Echo Bird, good for you! take care you don't suffer reflux from all that interest, rates, Insurance and maintenance your paying! Although, going by your odd comments of late, it seems you already are......
For some time now, buyers perception of price vs value has been evolving into unknown territory. Speculators such as yourself who fail to take notice only have themselves to blame. As a side note, I suggest you follow economic developments overseas more closely so as to get a better grip on where your future fortunes truly rest.
Auckland Inventory has been rising steadily since the end of 2016 where is was around 5500 and is now at 10000 and rising
Retired Poppy is correct, inventories are bloating and days to sell are increasing
There are more answers in what havnt sold than the ones that have.
The combined sales in Feb March this year were slightly higher than last year - it suggests a market ticking over. What I think is more significant is that over the past two months B&T have sold about 1,700 properties but added around 3,500 properties to their inventory. In other words for every house they sold they listed two.
The message all agents are giving is that prices are stable - and in fairness the auction sales suggest stability. However, the Auckland market has operated on public perception so much - and as soon as the perception changes to a falling market we could see significant falls in prices.
.............. Random property bull talks about how data shows it isnt crashing [ made incredibly irritating by smugness, lack of foresight to see how much their little hobby horse is hurting NZ]
.............. Random property bear talks about this being the beginning of the end.. [made almost as irritating by baseless comments and extreme "sky is falling' syndrome. Yes supply is higher, yes auction clearance rates are lower.. but in the broader context of historical norms its all largely irrelevant for LARGE downside moves ]
Auckland property market is flat.. and is not going up or down in hurry. The problems with the market will not be fixed on the demand or supply side by local or central govt, so prices will most likely not drop too much... But nor will they ramp up any time soon due to banks being more prudent and money flow from china drying up
Emotion is an important driver in spending behavior and patterns, which are linked to houses prices. That's why bubbles are promoted and tolerated.That should be your key takeaway. Govt actions (or inaction) and / or bank finance are important factors, but most people don't have any idea of what impact they have on house prices, except what they think should happen.
$100K discounts on new properties in AKL :
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=120…
Check this and report back https://homes.co.nz/app/area/auckland/flat-bush/calcite-avenue
Oldest trick in the sales book. Discount on what?
They are worth whatever the market will pay for them. I had to look on the map to work out where Flatbush was. Given the distance from the CBD and the new COL fuel excise tax just announced I'd say today's value is less than last week, but not $100,000 worth.
Edit: Rough calcs suggest an annual increased fuel bill of $175 for the Flatbush / CBD daily commute, so that equates to $4,000 less in borrowing power.
FYI, 6 Calcite Ave, Flat Bush - vendor asking price 989,000. Council valuation 920,000. Homes.co.nz valuation 890,000.
Interestingly, property was purchased in August 2015 for 940,000. Looks like vendor asking price is trying to breakeven on their sale price after real estate commissions and other sale costs ...
Looks like a discount on their original asking price ...
Herald says " Auckland housing market perks up in March, says Barfoot & Thompson [...] sales reaching their highest point in 12 months, according to the city's largest realtor."
interest.co.nz says "B&T's March sales at lowest level for the month since 2010"
Can they both be right?
Funnily enough,the article about the $100k discounts on new houses was the lead article with a large picture around 6:30am this morning....someone from the property world must have choked on his morning coffee and made a phone call...the article was soon relegated out of the spotlight...
The whole spring/summer selling season has been notable for low sales volumes.
As a result the inventories in Auckland are getting higher and higher (Trade me is now at over 12500!!!)
When I look around at houses for sale locally there are ones that are on there with desperate sales headers like, "Vendor says sell", "Vendor doesn't want 2 houses" that have been for sale for months.
Believe me, the pressure is rising!
Hold tight, somethings gotta give!
There is no housing shortage.
It's all a beat up as these figures prove
It is an affordability shortage and the reason is that people are nervous about committing themselves to huge debt with personal guarantees as all mortgagees demand.
There should be no PG's required as the banks have the security in the property which should be enough.
Take away the PG's and buyers, especially FHB's will be able to afford a home once more.
Lost me with these statements. The problem PG's really only relate to Trusts. What needs to happen is prices to fall before houses are affordable to FHB's. Auckland prices have lost relationship to fundamentals - what they can rent for or what people can afford.
The problem is that prices have been bid up on the expectation of further price rises. And that ponzi scheme is coming to an end.
No - PG's do not relate to Trusts only.
99% of buyers need to give personal PG's whether or not they are buying as individuals or on behalf of a Trust.
When signing as Trustee you are signing in your capacity as Trustee, not in your personal capacity but when buying in your own name you are on the hook . In the States, you can borrow by way of mortgage without PG's.
Still no catalyst has occurred to shake the market up & reveal the true state of our global assets. Interest rates remain low to keep the indebted spending, no foreign buyer ban implimented, banks still spending with little regard for the mountain of credit we are all sitting on and no international shockwaves destabilising the global credit ponzi scheme that'll then roll on to our sunny shores. Latest possible wobble is a trade war between US & China.
It will happen. When it does we can learn about how & why it happened in 5 years time from a few docos and hollywood movies. We will tut tut each other for being little greedy pigs while out shopping for the next cheap deal.
A lifestyle property I've kept tabs on the last 18 months, we went to an open home when it was first listed. When the agent asked for price feedback we basically got laughed at when we said it's worth early 500's.
Jan 17 - $699,000
Mar 17 - $620,000
Apr 17 - $599,000
Rented, so off the market for 12 months, was asking $500pw plus extra for the paddocks.
Back on now for $565,000
It's getting there....
I have a similar story of a lifestyle property we viewed in August last year at an asking of $899k. At the time I said to the agent, willing to offer $780k, got laughed at. Received a phone call on Monday from the same agent wanting to know if I'm still wanting to offer $780k? I told her that was last year's price, and the price now is $720k, again she laughed. Let's see what happens in August this year.
Hmmmmm,me thinks people who say auctions don't work any more are incorrect...
It appears the "Dutch Auction" process is now in place...
Which aligns the AKL property market nicely to the Tulip price bubble correction of 1637...
What was the Split Enz song..."History,never repeats..."
Bruce Springsteens' take on that property...
https://www.youtube.com/watch?v=3fdZWbIsrFk
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