The real effect of the lockdown would not show up until May's trading statistics
Auckland has continued to feel the impacts of the COVID-19 crisis as Barfoot & Thompson’s latest sales data revealed that market activity in the region halved in April compared to March.
Peter Thompson, managing director of Barfoot & Thompson, confirmed that Auckland had only 552 sales in April, half of those in March.
“Not surprisingly, it was the sales numbers for the month where the biggest decline was felt,” Thompson said. “However, those properties sold at prices not far below those in March, which were at their highest levels for more than two years, and for higher prices than they were 12 months previously.”
The average price decreased by 3.2% at $962,136 and the median price by 2.7% at $900,000 compared to those in March.
“While some of these sales were made in April under the lockdown regulations, many were sales completed in April but agreed in March and therefore do not give a complete picture of the state of the market,” Thompson said.
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Thompson warned that the real impact of the lockdown would most likely manifest in May’s trading statistics.
“What April’s data does underline is that before COVID-19, the Auckland property market was experiencing a solid upturn in sales and prices, and that upturn has been stopped in its tracks with a drastic fall in sales and a modest reduction in prices,” he said. “In a normal month, the level of downturn in April prices might be passed over as no more than a monthly variation.”
He noted that Barfoot & Thompson listed 239 properties for sale in April, less than a quarter of their anticipated figure during this time. However, the company considers the number as a positive sign for market stability as it shows that people have still not given up on the housing market entirely.
“Vendors appear to be taking a cautious wait-and-see approach, which is the same trend that occurred in past economic downturns,” Thompson said.
