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Return to traditional market – B&T

Falling sales and prices mean the Auckland market has changed and many buyers and sellers are now motivated by traditional factors rather than capital gain.

Thursday, August 3rd 2017, 10:30AM

by Miriam Bell

Barfoot & Thompson managing director Peter Thompson

That’s according to the head of the city’s largest real estate agency, following the slowest July in seven years.

Barfoot & Thompson’s July data shows that Auckland sales were down by 12.6% to 747, as compared to 855 in June.

They were down by over 25% (26.8%) on July 2016 which saw 1034 sales.

Barfoot & Thompson managing director Peter Thompson said the sales numbers meant it was the quietest July since 2010.

New listings were also down. July saw 1173 new listings which was 25.2% down on June and 17.7% down on July last year.

It was the lowest number for the same month in the past seven years, Thompson said.

Alongside the fall in sales, both average and median prices dropped further in July.

The average price came in at $908,319 in July, which was 0.6% lower than June and 1.7% lower than the average over the last three months.

However, it was still up by 4.6% year-on-year.

In contrast, July’s median price was $810,000 which was down by 3.6% on June and by 3.6% year-on-year.

Thompson said it will take some time for both buyers and vendors to navigate the changing market.

“Opportunities for vendors to sell are still plentiful, however sellers need to be willing to set themselves realistic expectations and listen to what the market is telling them.

“Vendors are less likely to see quick sales and significantly above average price increases, in the short term at least.

“However, this is still a good time to buy and sell in Auckland, given what are relatively small market movements.”

In this type of market, people are motivated by the more fundamental reasons to move house such as a growing family, change of job or downsizing, he said.

“This could be seen as a return to house sales being influenced by those more traditional factors.”

For ASB economist Kim Mundy, the data suggested that sellers are becoming more cautious.

The prolonged period of slower sales activity, along with the impending election, appears to be impacting would-be sellers’ decisions, she said.

“We expect both sales and new listings to remain soft over the next few months, but this could see inventory levels stabilise (or tighten slightly) rather than keep creeping higher. 

“Once we are through the election, we expect the imbalance between housing construction and population growth will keep a floor under Auckland house prices.”

 

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchSupply shortage will counter cooler market »

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  • Harking back to the old days
    “Tactical move by CIGNA and looks like they have a lot of bench strength now in sales, underwriting and product / pricing...”
    2 days ago by hitting rock
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    2 days ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    3 days ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    3 days ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    3 days ago by LNF
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ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
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China Construction Bank 4.49 4.70 4.80 4.95
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Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
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HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
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Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
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The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

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