Contrary to the usual year-end pattern, Auckland residential property sales plateaued in October, with the median price up only slightly – from $441,500 to $445,000. However Crockers Property Group says this even this slight rise may be due only to a disproportionate number of high-end property sales.
Tuesday, December 4th 2007, 12:00AM
by The Landlord
Almost 20% of properties sold in October were in the $700,000+ category – a whopping 46% increase on the previous year. “This suggests that monthly median prices may well be being supported by sales at the upper end of the market, with sales close to actual median levels somewhat slower,” says the latest Crockers market research report.
The number of sales recovered marginally to 2240 from September’s five-year low of 1956.
Historically, the monthly median sales price has followed a predictable seasonal pattern, slowly rising in the early months of the year, flattening out during winter, and rising once more towards the end of the year. The 2007 price pattern, however, bears little relation to previous years.
Sales numbers bear even less resemblance to earlier years. Despite relative stability in house prices, property sales volumes, along with interest rates, are volatile. “As a result, sellers and buyers appear at times to be poles apart in their price expectations,” says Crockers.
In line with flat sales figures, rental figures for October have also been static, apart from a recovery in the Auckland three-bedroom market to August levels of $426 per week. Auckland rentals continue to command a 33% premium on national rental levels for three-bedroom properties, and a 19% premium for two-bedroom properties (Auckland average: $322 per week).
