Data from estate agent Barfoot & Thompson and valuers QV shows the city is now a buyer’s market, says ASB chief economist
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Data from estate agent Barfoot & Thompson and valuers QV shows the city is now a buyer’s market, says ASB chief economist Nick Tuffley.
Tuffley told the NZ Herald that the market has shifted to favour buyers over the past year with supply of homes on the market up 60%, taking the pressure of potential buyers.
He was responding to data from QV which revealed last week that Auckland’s residential property prices gained at a slower pace than the national average at 7.2%, the slowest pace since September 2012.
"That fear of missing out which sometimes drives people to aggressively bid up and try and jump on properties quickly, those dynamics have gone. But the background of the underlying shortfalls is certainly putting a floor under prices," he told the NZ Herald.
Data from real estate agents Barfoot & Thompson reveals that lower sales volume, the lowest in seven years, had impact on prices in recent months.
“In June the average sales price was $913,606, a 3.1% fall on the average price for the previous three months, and only 0.6% higher than it was 12 months ago,” said Peter Thompson, managing director of Barfoot & Thompson.
The firm’s data shows sales of 855 in June, down 3.5% from May and down 26.8% from June 2016 but inventory has not dipped as some owners have taken their homes off the market.
“Taking property off the market when prices are not rising is a common trait in Auckland and will contribute to prices remaining stable through to September’s election,” added Thompson.
ASB’ Tuffley says that prices may reduce as sellers adapt to the market with more realistic pricing.
Tuffley told the NZ Herald that the market has shifted to favour buyers over the past year with supply of homes on the market up 60%, taking the pressure of potential buyers.
He was responding to data from QV which revealed last week that Auckland’s residential property prices gained at a slower pace than the national average at 7.2%, the slowest pace since September 2012.
"That fear of missing out which sometimes drives people to aggressively bid up and try and jump on properties quickly, those dynamics have gone. But the background of the underlying shortfalls is certainly putting a floor under prices," he told the NZ Herald.
Data from real estate agents Barfoot & Thompson reveals that lower sales volume, the lowest in seven years, had impact on prices in recent months.
“In June the average sales price was $913,606, a 3.1% fall on the average price for the previous three months, and only 0.6% higher than it was 12 months ago,” said Peter Thompson, managing director of Barfoot & Thompson.
The firm’s data shows sales of 855 in June, down 3.5% from May and down 26.8% from June 2016 but inventory has not dipped as some owners have taken their homes off the market.
“Taking property off the market when prices are not rising is a common trait in Auckland and will contribute to prices remaining stable through to September’s election,” added Thompson.
ASB’ Tuffley says that prices may reduce as sellers adapt to the market with more realistic pricing.
