Property prices rose throughout 2017 in Auckland, but at a slower pace to previous years
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Home prices in Auckland continued to rise in 2017 albeit at a slower pace over the past five years, according to the latest figures from real estate firm Barfoot and Thompson.
The average selling price in the city last year rose by 4.5% to $926,632, while the median selling price increased by 2.7% to $843,583.
By December 2017, 9,037 properties were sold, more than am quarter lower than the numbers sold in each of the previous three years. A year prior, 11,974 exchanged hands.
The cool down comes on the heels of measures progressively introduced by the Reserve Bank, a more prudent approach to mortgage lending by the trading banks and a growing apprehension among buyers, according to the firm’s managing director, Peter Thompson. He said the sense of urgency to buy a property regardless of its asking price has “disappeared.”
“It has been replaced by buyers taking a more considered approach. Normally when sale numbers fall by such a large percentage, prices retreat from their record high levels. But this has not occurred, and prices have continued to rise modestly. It underlines there is still buyer support at current prices,” he added.
Thompson said this was aided in part by the release of new capital values by the city council. The move gave sellers and buyers the same information on the potential value of a property.
Last year, over a third (37%) of Auckland homes sold north of $1m, a higher share than in 2016 (35.4%) and 2015 (29.1%).
“Lifestyle and rural property sales in 2017 in the Auckland and Northland regions followed the same pattern as for Auckland residential sales. Sales numbers fell in comparison with those in 2016 and 2015 but were still firm, while prices for good quality properties held steady,” said Thompson.
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The average selling price in the city last year rose by 4.5% to $926,632, while the median selling price increased by 2.7% to $843,583.
By December 2017, 9,037 properties were sold, more than am quarter lower than the numbers sold in each of the previous three years. A year prior, 11,974 exchanged hands.
The cool down comes on the heels of measures progressively introduced by the Reserve Bank, a more prudent approach to mortgage lending by the trading banks and a growing apprehension among buyers, according to the firm’s managing director, Peter Thompson. He said the sense of urgency to buy a property regardless of its asking price has “disappeared.”
“It has been replaced by buyers taking a more considered approach. Normally when sale numbers fall by such a large percentage, prices retreat from their record high levels. But this has not occurred, and prices have continued to rise modestly. It underlines there is still buyer support at current prices,” he added.
Thompson said this was aided in part by the release of new capital values by the city council. The move gave sellers and buyers the same information on the potential value of a property.
Last year, over a third (37%) of Auckland homes sold north of $1m, a higher share than in 2016 (35.4%) and 2015 (29.1%).
“Lifestyle and rural property sales in 2017 in the Auckland and Northland regions followed the same pattern as for Auckland residential sales. Sales numbers fell in comparison with those in 2016 and 2015 but were still firm, while prices for good quality properties held steady,” said Thompson.
Related stories:
Housing at an all-time high
Lower interest rates stoke greater competition for mortgages
