The number of homes sold by Auckland's largest real estate agency rose strongly last month, as did the median selling price.
Barfoot and Thompson sold 1341 homes in March, well up on the 698 homes it sold in February but down 256, or 16%, compared to the 1597 homes it sold in March last year.
The median selling price of homes sold by the agency last month rose to $798,000, just below the record high $800,000 achieved in December last year.
However the number of homes newly listed for sale by the agency declined in March and so did the total number of properties it had listed for sale on its books.
Barfoot received 1874 new listings in March compared with 2060 in February and 1997 in March last year.
At the end of March it had 3093 homes listed for sale on its books, compared with 3318 in February and 3347 in March last year.
"When prices are this strong in March, the trend is for prices to hold steady through the year," Barfoot & Thompson managing director Peter Thompson said.
"As it has been for the past two years, lack of supply remains the main price driver.
"Although a record number of building permits are being issued and new homes are springing up everywhere, Auckland is simply not building homes fast enough to keep up with the growing population.
"Statistics NZ reported in February alone the population of Auckland increased by about 3000 people.
Based on the Auckland average occupancy for houses of three people to a property, theoretically 1000 additional properties would have had to become available in the month to house such growth," he said.
There was also a sharp jump in the number of homes the agency sold for more than $1 million.
In March Barfoot sold 474 homes for more than $1 million, the highest number of million dollar-plus homes it has ever sold in a single month, and it meant more than a third of the homes it sold last month went for more than $1 million.
At the other end of the price spectrum only 146 properties sold for less than $500,000, which was just 10.9% of Barfoot's total sales in March.
Barfoot Auckland
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29 Comments
Here’s a special rhyme I made up for March: “Boom boom boom, the March stats loom, let’s go back to the auction room and shut down the doom & gloom!!”
What a fantastic result for March! This has pretty much confirmed what I have expected – a March-o median price bomb & boom. I actually predicted 865k for average & 800k for median last week!! Yes I’m your crystal ball haha :-)
"In March we sold 474 properties for in excess of $1 million, the highest number ever in one month and it represented more than a third of all properties sold”. Wow long may it continue to rise on our Auckland goldmine paradise.
Well done with the predictions. I thought we'd have a new record median price. Looking forward to seeing April results. The market is humming - just like you!
I think we'll see another double digit growth result for 2016 in Auckland. And to the naysayers - Auckland is still cheap by international standards, price to income ratios aside. It's a global village now (for the wealthy).
@ doublegz don't just parrot as fact what other people tell you, especially when it comes from a real estate agent.
Barfoot median/average sales price was always going to correct in March and will not resemble what happens with the Auckland REINZ stratified index. Here's why:
In February, B&T's median price actually declined by 2.9% from January 2016, whereas the January to February period in recent times rises by on average 4.5%. The actual REINZ Auckland index rose 5.5% from January 16 to February 2016. So I'd suggest the data isn't like for like or was just catching up. I also suggest you wait and see what the actual REINZ Auckland stratified index says for March.
Worth mentioning that Barfoots house sales dropped 16% from March last year which is never positive for pricing momentum.
"Worth mentioning that Barfoots house sales dropped 16% from March last year which is never positive for pricing momentum."
I wonder if this has anything to do with the lower listing numbers. Less choice = reduced ability to buy. Ideally we would be seeing increasing listing numbers. I.e. if you don't want prices to keep increasing. Also, if capital gain investors felt the market had run it's course I'd expect to see a big increase in listings.
The story I get from all this is that their is continued confidence in the Auckland market.
Yes somewhat true. Ratio of sales to listings (inventory) the key indicator with nothing in the historical data showing anything too untoward.
But you should temper your excitement - or not it won't change anything - but March is the biggest month of year so getting overly giddy is silly. In the same way doomsters point to an impending crash coming off from peak months.
UP just released their free report on the 2016 Outlook for the Auckland Property Market. Grab your copy today from http://uprealestate.co.nz/blog/should-you-sell-in-2016
In this report, they examine the underlying factors driving the Auckland real estate marketplace and consider the implications for those with property to sell.
They also review the impact of the new NZ Government measures and what they have meant for property sellers.
Enjoy!
I downloaded and read it. It seemed pretty reasonable and sensible, they even advise selling. It is interesting we get so much flak for simply reporting on something. I am sure both you and I would report negative observations if that was what we were seeing. I felt compelled to comment because the tales of doom and anxiety that I have read in the comments here simply didn't accord with what I was observing on the ground.
Interesting that Pete didn't point out that the fact that 474 million dollar plus houses and 10.9% less than $500 may have influenced the median price. He did point out that in February there were only 187 million dollar plus houses and 20.6% less than $500 and that this would have reduced the median price.
The devil is always in the detail and good analysis of trends over time. I hope that the market will not crash, but decline 10-15% and then stagnate. If the Auckland housing market does crash New Zealand will be in serious trouble as I don't believe New Zealanders think they have any other means of generating "wealth". There is an article on CNBC which reports that 6.5% of home owners is the US still have negative equity in their home (but this is the average - apparently in some states it's more like 14% and some local markets 40%).
http://www.cnbc.com/2016/04/04/how-are-millions-still-underwater-as-hom…
It also shows averages can be deceiving and not all markets are the same.
If this were to happen in Auckland I think the consequences would scary to say the least.
Shortage of stock could see Barfoot median jump to $825,000 in April - that will be a new record high. Looks like real estate is the only game in town for max return.
https://www.barfoot.co.nz/market-reports/2016/march/residential-sales-r…
Jan 2015 $700,000 Jan 2016 $760,000 increase $60,000
Feb 2015 $686,500 Feb 2016 $738,000 increase $51,500
Mar 2015 $711,000 Mar 2016 $798,000 increase $87,000
Best month on month increase in median price in the first quarter of 2016 was March. Looks like a strong recovery to me, not enough new builds happening, net migration gain stronger than ever and lower interest rates by the end of the month.
I think DGZ is correct - probably a 15% increase in median price by year end in Auckland and new records will be set for NZ
Look at the chart on page 9 http://downloadhere.nz/outlook-2016.pdf
Interest .co would be better served if when Ninness posts the Barfoots results that doublegz does not follow up with immediate commentary. Someone in the office should talk to doublegz and gordon and give them new names. 10.16 post, simultaneous commentary doublegz 10.17. Not the first time. Shame.
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