Real estate firm points out increase in listings as drivers of growth
It seems the growth of Auckland’s housing market cannot be stopped as its house sale activity increased again in October, according to Barfoot & Thompson.
The real estate firm reported 824 sales in October, 6.9% higher than September’s 771 sales and 3.1% higher than the average number of sales for the previous three months. However, it was still 2.4% lower than the number of sales in October 2018.
Peter Thompson, managing director at Barfoot & Thompson, said the growth was driven by the increase in listings.
“A feature of the market since March has been the modest number of properties being listed, and by the start of October the number of properties on the market was at its lowest for more than two years,” Thompson said, as reported by Landlords.co.nz. “In October that changed, with new listings being a third higher than in September, and more than 40% higher than the average for the previous three months.”
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Auckland’s average price also increased, albeit only slightly – with $939,132 in October, up 1.8% from September and 1.6% on the average for the previous three months. Barfoot & Thompson confirmed that prices are going steady in the region, although they have flatlined throughout the year.
However, Thompson noted that October saw a smooth, steady acceleration after emerging from the winter selling season and has set the platform for a positive run into the Christmas break.
“What October’s data signals is both vendors and buyers are coming to accept that the market conditions that have prevailed for more than two years now are the new norm, and that there is no big price increases or major price declines on the horizon,” Thompson said. “There is growing acceptance that today’s prices represent where the market is valuing property, and that’s where it’s likely to stay.”
