Barfoot & Thompson's October sales volumes were the lowest they've been in an October month in 12 years.
The real estate agency, which is by far the biggest in the Auckland market, sold 627 residential properties in October, the lowest number in any October since 2010.
In October last year Barfoot's sold 814 properties and in October 2020 it sold 1319.
October was the fifth consecutive month the agency's monthly sales have been at 10 year-plus lows.
There is no sign of the market coming out of its current slump in the latest figures, which also show there were only 1371 new listings in October, That was only 5.3% above September's levels and down 31.9% compared to October last year.
There is usually a significant increase in new listings in October as the market starts to crank up for summer.
However buyers will still have plenty of choice because the agency had a total of 4743 residential properties available for sale at the end of October, the highest number since April, and up 56% compared to the same time last year.
Price movements were a bit mixed but remained weak, with the agency's average selling price declining by $27,870, from $1,164,852 in September to $1,136,982 in October.
Barfoot's average selling price has now declined by $141,665 from its December 2021 peak.
Going against that trend the agency's median selling price increased by $28,500, up from $1,064,000 in September to $1,092,500 in October. However, the median price was still down by $147,500 from its November 2021 peak.
"A level of stability has returned to the Auckland housing market albeit one trading at a lower level than during peak activity in the last quarter of 2021," Barfoot & Thompson Managing Director Peter Thompson said.
"The median sales price for October at $1,092,500 was consistent with where prices have been at for the past three months," Thompson said.
"While it represents a fall of 12% on the all time high residential median price in November, the median price has now stayed within a 4% range for the past four months.
"Sales numbers are also starting to edge up, and October's sales of 627 are 2.1% higher than those for September and 3.8% higher than the average number of sales for the previous three months.
"They are modest improvements but represent a degree of confidence returning to a market that has been under price scrutiny and rising mortgage costs for much of the year," Thompson said.
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22 Comments
"Barfoot & Thompson's October sales volumes were the lowest they've been in an October month in 12 years."
This coffin has received so many nails its basically solid steel !
Surely Peter has been hanging out way too much with the National politicians given the amount of spin that is coming out of his mouth...
Oh Peter… tisk tisk
Median looks good - nothing to see here..........
Median looks good - nothing to see here..........
When looking at central measures of dispersion, you should also understand variance and the total number of data points. Looking at a median without a mean is a waste of time.
""The median sales price for October at $1,092,500 was consistent with where prices have been at for the past three months," Thompson said."
Agree that market fall has slowed, if not stopped at low's set in August/September. Similaray Market had fallen in March/April than the fall had slowed, if not stopped before taking the next dip in August/September.
Expect another leg of downward movement in December/January taking the median fall from 6%/8% in March/April to current14%/17%.. next leg should see a fall of 23% to 27%.
Novemebr sale will decide, if the market takes the next dip in December or in January. Market is falling in steps.
At least it's up to date.
in the context of todays news -- this is nowhere near the worst for Orr and Robertson!
"Sales numbers are also starting to edge up, and October's sales of 627 are 2.1% higher than those for September and 3.8% higher than the average number of sales for the previous three months."
those reluctant FHB will regret their decision!
TTP ;-)
Meanwhile, let's pause for a microsecond, for a reading from the Property Broker's Bible of friction (oops I mean fiction),
"There’s a good chance that the housing market will find its footing - led by first-home buyers - sometime in the new year"
TTP
👏👏👏
When the only tool in the box is a hammer, everything looks like a nail...... Whil e. Coyote moment coming March 2023. if you not listed now it wont happen 3 weeks before xmas, then we all on holiday til mid feb or at the beach Q2 2023 is where the rubber hits the road and people going to have to adjust to the new buyers limits, by then rates will be higher. Great time to pickup an ex lease silver Q7 around then, or one of those toy range rovers in white.
Yup, well said!
Agreed. Speculand has its head in the sand sheltering on long run low rates. They are going to discover a huge pile of FOOP in their pants when its time to role the loan. But yeah, houses are going to double again with mass inflation and interest rates racing north. #stupidity.
If the sheeple vote in the land tax, and every working person paying tax should, Ill be in my chair with a bucket of popcorn.
If you look at the bigger picture a $5 bln drop in year to date numbers compared with last year is hurting the total RE Industry. Not only the agents but also all the others, mortgaga brokers, renovators, interior designers, furniture letting agencies are feeling some pain.
... you probably can't hear it , but I'm currently playing the world's smallest violin in sympathy for them ... 😂
Property still looking good on a 10 year basis, like kiwisaver
You might need to adjust the Y axis of the average price growth chart soon Greg.
Only goes to -10% y.o.y.
(part sarcasm, part not sarcasm)
Let’s wait for the HPI release next week before we put any interpretation on the October data, the median sales price means little in the the Auckland market with low sales volume.
People who fixed mortgage on one or two years after refinance will now be paying $1200 per week rather than 750 per week on a 800 k mortgage with rates climbing this will go even higher. With house prices continuing to crash in some areas by 20% these people will be locked in to a mortgage which is costing more. Once defaults start to occur this will speed up house price crash.
Yep. Higher cost of everything (inflation), higher interest rates, more youth to Aussie, more speculators rolling of low loans. Which bank will blink first and start shooting debt without supporting income?
I would think when REINZ data is released for October it will show a drop in volume of at least 35% compared with last October
I have heard some of the big furniture and appl;iance guys doing it hard, moving house a big driver for new furniture appliances etc
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