Real estate firm lists factors contributing to the stability of the average and median prices
Auckland has seen exceptional sales numbers in February – but they’re not enough to have a significant impact on the region’s property prices.
Peter Thompson, managing director of Barfoot & Thompson, revealed that last month’s 804 sales had been the highest in a February for five years. However, the prices at which properties changed hands were still in line with the market’s condition for the past few years.
“The average and median prices declined markedly from the level they have been at over the past three months. However, they were in line with those being paid at this time last year. Stable prices were a major factor in the high number of sales in the month,” Thompson said.
“The prices that buyers were prepared to pay met vendors' expectations, and our clearance rate of properties at auction, and by direct negotiation, were close to the numbers we were selling at the height of the 1990s property cycle.”
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Thompson said the growing influence of apartment sales has also contributed to the stability of average and median prices.
“In February, sales of properties for under $500,000 represented 16% of all sales. In January, sales of under $500,000 properties accounted for 4.7% of sales. There is every indication that the excellent start the market has made to the year will flow into March, which traditionally is the best sales month in the first half of the year,” he explained.
“There are no early signs that the spread of coronavirus would affect property sales. [We expected this] as property sales tend to take place over a 30 to 60-day period, and any signs that the virus might have on market activity are unlikely to appear before April’s trading results.”
