Auckland sales and prices plummet

House sales in Auckland dropped nearly 50% last month.

Wednesday, May 4th 2022, 9:55AM 1 Comment

by Sally Lindsay

The latest data from Barfoot & Thompson, the region’s biggest real estate agency, shows the greatest impact the changed economic conditions had on the property market in April was the 615 sales - a 47.9% drop on March.

“Buyers are now showing a greater reluctance to meet vendor expectations,” says Peter Thompson, Barfoot & Thompson’s managing director.

At the same time property prices have dropped. The April median price at $1,141,000 was a fall of 3.3% and the average price at $1,212,376 was a fall of 1.8%. However, prices remained well ahead of those 12 months ago.

"Remained well ahead of the prices of property 12 months ago”, said Peter Thompson, Managing Director of Barfoot and Thompson.

When compared to the average prices paid over the previous three months, the median price in April fell 1.7% and the average price fell 0.7%.

“For vendors, the positive news is that the prices at which sales are being made are still well in excess of those prevailing 12 months ago,” says Thompson.

“April’s year-on-year median price is 8.7% ahead of that in April last year and the average price is up 8.8%.

“Vendors who have an open mind as to the value of their property are the ones who are more likely to achieve a sale in the new environment into which the market is heading.”

New listings for the month at 1,302 were down a third on those for last month but are in line with the numbers normally listed in April. It brought month-end stock number to 4,845, the highest it has been for more than three years.

The sale of properties at the top end of the price range remained strong with 85 (14% of all sales) being sold for more than $2 million and 20 of that number selling for more than $3 million.

Tags: house prices

« Two cities drop out of the $1 million marketFalling house prices slowly entrenching »

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Comments from our readers

On 4 May 2022 at 3:05 am Michael Donovan said:
Crikey.......Did I say 'crikey' at the Genesis of my original (many months ago) comments you may recall??

Remember....I purposely locked my predictions in writing back at the start, so I wasn't to be seen to be telling everyone 'after' the event.

The TWO regions to drop (so far) are the two that were expected to do so for reasons previously provided.

They won't stop dropping now that the movement has begun to get traction..!

And the 'ailment' is now going to be caught quicker than a virus nationwide, as the 'bungy' effect remains with a handful of centres showing price rises in the last few weeks.

Property prices can easily be 'talked up' in certain times.

Now, remember the fact that 'INFLATION' does not actually exist.....except as a word.

Houses do NOT 'inflate' in value, they actually decrease in value...!

The confusion is something I have attempted to explain previously, so here I shall attempt to repeat a clarification.
And you can check me out on Google if doubts remain.

Rob Muldoon made a speech to the nation back in 1984, with included brief words as follows.....

"I am going to decrease the value of the New Zealand currency (in 1984) at the rate of 1% per MONTH."

What a few of us heard was the following.....

"I am going to create the effect of 12% p.a. INFLATION."

And that understanding was one of the main reasons why I then co-founded my hugely successful investment planning business.

INLATION is the direct effect of the diminished purchasing power of our currency.
This phenomenon is not exclusive to is a worldwide phenomenon.

To help put my attempt at explaining all this clearly enough, readers would surely recall my reference to something I term as a form of 'screen-saver', by downloading: and begin by looking at the top left corner entry 'ticking over.' $30 TRILLION plus national DEBT in Nth America.

Our PM had an extra approx. $300 BILLION printed during the last couple of years, which was subsequently released into our system, so applying Mr Muldoon's methods, we now have the resulting 'DEVALUED' currency.

So..... for those who watch TV, and/or read the daily news, they will now NOT be so bewildered at the main 'cause' of the increased (INFLATED) prices of our Goods & Services, such as fuel and food to name a couple..!?

In short, more currency 'bucketed' into our NZ system has reduced the buying power of our currency, so we need more of it to buy things...!
It was printed so that people and businesses could be subsidised while experiencing a claimed pandemic......and now (in simple terms) it is the price of that which is to be paid by all..!?

As a final reminder, readers would recall my reference to a speech made in Hamilton in 1998 by our Dr Don Brash, where he stated that they (govt) had removed houses and land out of the CPI

Interesting bit of 'visionary' stuff, would you agree?

So a summary may appropriately be that people most often bought a house (or several houses when a possible greed factor applied) for the wrong reason, and also 'thought' that inflation existed...!?

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