Barfoot & Thompson sold less properties in October than it did in September but the average and median selling prices both increased.
The real estate agency, which is the largest in Auckland, sold 969 residential properties in October, down slightly from 986 in September, although it was still the most properties it has sold in the month of October since 2020.
The average selling price increased to $1,129,950 in October from $1,081,269 in September, (+4.5%), while the median selling price increased to $955,000 from $934,500 in September (+2.2%).
The increases in the average and median selling prices followed three consecutive months of declines.
However, the really big increase for the month was for the number of new listings received by the agency.
The 2361 new listings was the most Barfoot's has received in the month of October in at least 20 years and the highest number it has received in any month of the year since November 2021.
That pushed Barfoot's total stock of homes for sale at the end of October to 5611, which was up 22.9% compared to October last year and was at the highest level for the month of October since 2010.
"The arrival of spring, the reduction in mortgage interest rates and the fall in inflation created positive expectations and the Auckland market delivered," Barfoot & Thompson Managing Director Peter Thompson said.
"The increased confidence in the housing market attracted a record number of additional listings from vendors, which was supported by a solid number of new builds reaching the market.
"It is anticipated that the high number of available properties will act as a handbrake on prices rising quickly," Thompson said.
Barfoot Auckland
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63 Comments
This is a market being flooded with listings, greeted with weak buyer demand and anemic actual sales volumes. I think it's way too early to pop the corks and call this a sustainable uplift in prices especially when employment insecurities are in play. In my opinion, lets see if the REINZ HPI shows a sustainable increase over say a 3 month period and see if volumes explode to clear this still growing backlog of inventory.
Median values are actually falling and have done so for eight months in a row - here
They may actually end up becoming somewhat reasonable rentals to own if the rental yield picks up to a decent level from whatever base level they end up selling for.
Lower capital gains but good cashflow. Back to the traditional style of dividend investment with just inflation hedging in the price hopefully.
Worst case scenario, they slum.
Entirely predictable when 45% of new builds are townhouses. When people move up the property ladder they move out of the townhouses so the 3-4 bed family homes are reduced in supply. There may be lots of houses on the market but lets get real here, when someone sells their house they usually go and buy another so the total number on the market has not direct connection to prices.
yup, I suspect it's the apartments and townhouses NOT selling which drives up the average and medium price i.e. people are realising the bottom end of town is really not worth the asking price that the delusional vendor is asking - let's see what the HPI has to say
I'm assuming Chris Bishop is horrified by this news and is arranging meetings accordingly. Why don't the press shove a microphone in his face and ask him directly..."what are you going to do to make homes more affordable now?! Not medium/long term...now!!?" The young will continue to leave.... it's beyond a joke.
The 2361 new listings was the most Barfoot's has received in the month of October in at least 20 years and the highest number it has received in any month of the year since November 2021.
That pushed Barfoot's total stock of homes for sale at the end of October to 5611, which was up 22.9% compared to October last year and was at the highest level for the month of October since 2010.
No doubt many DGMs will be bamboozled with this...
Nah, a few people drank the spruiker's "bottoms in" cool aid.
Fewer sales, more listings, less people, less jobs, lower rents, global interest rate direction murky, house completions still above average, insurance up, global reinsurance costs up, climate change risks up, Luxon dumping his portfolio... Plenty of downside signals
Average up while sales numbers down seems consistent with DGM thinking, especially as the spruiker narrative was reinstatement of interest deductibility, plus anti-tenant laws, plus interest rate drops were going to send prices to the moon.
@ agnostium - What a fantastic opportunity to buy if one is in the position to do so! As you've clearly highlighted the bottom of the market, or very near to at least, which is the best time to buy.
Your not seriously suggesting people wait until there's more sales, less listing's, more people, more jobs, higher rents, global interest rates dropping every OCR announcement, changes in weather, business confidence up?
Yeah, your clearly not an investor of anything ate you. What terrible advice you pitch, staying away when everything's down, fomo when everything's high instead. Or are you one of those chicken little sky is falling property skeptics who think never is a good time to buy but instead waiting for "the great bubble burst of 1920s all over again" lol
By the way, there's no anti - tenant laws that exist. There are however laws that exist to protect owners and their assets against tenants who believe out of entitlement that they can miss rent, damage the property, distrub the neighbours peace, smoke or grow drugs on site, keep animals against tenancies, then try to do a runner. Thank goodness the balance is being restored. Tenants don't get to make the call when it's not their house. The fact that you advocate for this & putch laws against this as "anti tenant" is very telling about your financial position, & just where you fit in.
He who has the gold, makes the rules. Domt like it? Do what's required to own the gold, male your own rules. It's really that simple.
Feedback from Hamilton's northern suburbs: not much selling above 1/1.1M (which is huge for the region with an average of ~750k), it is even worse than 2022, listings piling up. It's interesting to note asking prices are almost fully back to 2021 expectations, not sure what the strategy is here, hoping OCR cuts will instantly make demand reappear? Also many properties that failed to sell last year are back on the market. Truly interested to see what will happen next, I'm guessing a good third will be withdrawn, some others will be offered for rent, rest waiting for incomes & rates to catch up?
The combination of high and rising listings, less sales, and higher prices for what sells to me would indicate many homes are going to be facing further price declines in real terms. May reach higher nominal values but compared to wage rises and the opportunity cost of tying up capital vs other investment opportunities, lots of housing won't look great. Utility value will be more important.
Real estate markets are hyper local so certain areas will still see appreciation in real terms. But to my eyes at least the "bubble" component of housing market is still in the process of deflating.
A lot of listings all entering the market to sell at the same time indicates either it is a great time to sell due to high demand or lots of people who want to sell are simultaneously following best practices around selling in spring etc.
Might be trying to achieve prices that can't be had for their type of property in this market. So they delist and then relist down the line. The danger being that in a situation of falling prices you want to be the FIRST to meet the market, not the last. As more stock builds up and doesn't sell any price corrections can turn from slow to sudden.
Or who knows, maybe prices and price growth are going to revert to pre-covid trend in real terms. I'm deeply sceptical of this but crazier things have happened.
Be interesting to see how this shakesout.
The headline of this article constitutes a paradox: on the surface it might seem to be the case that house prices increased across the board i.e. in all categories of value while, in actuality, it more probably means that there was a larger proportion of higher-valued houses sold.
Yes, from 01 March, it will be interesting who remains. I think they'll be from two groups. One group only paying if market market stats pleasures the narrative, the other (my group), still here no matter what the market does.
Based in Zwifter's response above - he knows deep down bad news will flow and will therefore gap it.
Our efforts to ensure supply is tight are starting to come to fruition.
The agency has also faced “significant challenges” with squatters and unauthorised entry into the building, spending $124,012 on security guards between June 3 and August 18
Kāinga Ora to board up Wellington’s Dixon Street Flats, 117 apartments to sit empty
It seems to me that some people would prefer an "outdated" roof over their head to none at all. I mean how much to keep it going vs all the rent being paid elsewhere. At least until they came up with a solid ready to put into action plan for it.
This is probably the most compelling reality, its been my argument all along.
Many have money but do not want to pay at this price.
Many have property but do not want to sell at this price.
There are NO WHERE enough buyers able to pay, for the houses that people wish to sell at current prices.
The Venn diagram has a small cross-over and two large circles, I have never seen the selling circle float off with the buyers chasing it... there are so few buyers it must be scary for the Spruikers. We are at end times for the NZ Property Ponzi.
The Property Ponzie is going nowhere but South.....interest rates have bottomed at 2012 to 2015 rates. This previous age, is where the buyers are ready to pay........10 year old prices are coming back. Just ask ole Luxy, why he is liquidating en masse???
Meanwhile is Lala land.......Dopium and hopium is strong with the spruiker squad.
Interest rates dropping like a stone
More FHBs - 2500 in September alone
More lending to FHBs ($1.3billion) and investors ($1.3 billion) in September - and that was before lowering interest rates kicked in.
Auction median prices up last week
Auction clearances now consistently over 40% (compared with 25% for most of 2024)
DGMs in Lala land
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