Auckland house prices have stopped rising for the first time in seven years, according to new data from Barfoot and Thompson.
The real estate agent’s November sales data showed the Auckland housing market ‘turning’ but still well positioned to achieve a soft landing.
“Signs the rate of price increase has been slowing have been there for some months but November’s sales data confirms that for the time being at least, Auckland prices have stopped rising,” said Barfoot & Thompson managing director Peter Thompson.
“Both the average sales price and the median price in November were down on those for October.
“The average sales price in November at $933,130 was down 1.1% on October’s and only 1.1% higher than the average price for the previous three months.”
Thompson said the median price at $850,000 was down 1.7% on October’s and down 0.6% on the median price for the previous three months.
“What puts November’s lower prices into context is that November and December are traditionally when prices peak for the year, and this is the first time in eight years that November’s average and median sales prices have been below those for the previous October.
“Encouragingly new listings at 1879 have been strong and sales numbers at 947, while down marginally on the same month last year, were sound and up 21.7 percent on those in October.
“The market is not over reacting to the changes occurring.
“Clearance rates under the hammer at auctions were 30 percent in November with another 20 percent being sold in the 24 hours following auction.
“Those sellers who were realistic and prepared to trim their reserve price achieved sales and buyers were confident in meeting near record prices.”