Housing market slump may be over, though uptick is yet to come

House prices are slowly coming out of hibernation, according to Barfoot & Thompson

Housing market slump may be over, though uptick is yet to come

Auckland’s residential housing market slump may be coming to an end, according to new figures released by Barfoot & Thompson.

According to managing director Peter Thompson, current sales figures indicate a slow return of market confidence.

The average sales price has shown little movement over the last 12 months but is currently recorded at $930,223, 1.4% higher than this time last year. The number of properties sold has also jumped by 10.1% since April 2017, with sales numbers in the first five months of the year being marginally higher than those of 2017.

“While there is no suggestion that prices are poised to start their upward climb, with prices no longer declining in comparison to 2017, the point has been reached where a further price decline is the least likely future outcome,” says Thompson.

“In meeting the market price, buyers can have confidence that the chance of them being disadvantaged by future price volatility is low.”

The median sales price declined by 2.4% since April 2017, but this was partially attributed to the decline in property sales in the $1-2m price category, which were down by almost 60%. By contrast, sales of homes under $500k accounted for almost 10% of all sales.

“New listings at 1358 for the months were strong, ensuring that buyer choice at month end was the second highest they have been for six years,” says Thompson.

“After an active March, the rural, lifestyle and commercial markets experienced slower activity in April. Demand also remained strong for orchards, particularly for kiwi fruit in the north and far north.”