Auckland housing market beds down for winter, no change expected till spring

Auckland's average residential sale price by the city's largest agency has hardly moved lately due to winter's onset, according to new Barfoot & Thompson data out this morning.

April's average Auckland house sale price was $928,380 and May's was $928,992, both down on March's $931,673, the agency said.

Sales numbers continue to bounce around: in January, the agency sold 653 places, in February 474, March 963, April 667 and last month 821.

"For the third consecutive month, the Auckland residential property market registered a limited change in activity with May sales numbers remaining subdued and prices not moving," the agency announced.

Peter Thompson, managing director said: "Within the context of the onset of winter and where the market is at, May activity was typical of what we have seen over the past 18 months."

But he acknowledged last month's 821 unconditional commission-paid sales were well down on last May's 1027 sales.

"What is clear is that the Auckland market has come through the concerns created by the now abandoned capital gains tax and sales are settling at current levels in a robust fashion. While there are no signs of a price retreat, nor are there signs of prices rising. It is a situation likely to remain until spring," Thompson said.

New May listings of 1186 were in line for those last month and at 4319 the number of properties on our books at month end were marginally down on those for April and those for May last year.

"Sales were made across all price segments in the month with more than a third of sales achieving a price of $1 million or more. Sales for under $500,000 represented 9.4 percent of sales," Thompson said.

Fewer places are being auctioned, he acknowledged.

"The rural and lifestyle market in May experienced much the same trading conditions as the urban market, and we sold 48 properties in the month, our highest number in a month this year," he said.

OneRoof's property report was issued this week and it had data on how many houses were flipped or re-sold quickly during the last boom.

The state-owned Quotable Value also released national house sales data this week, showing Dunedin having the strongest value growth out of all the main centres, while Auckland values dropped by 1.5 per cent annually and 0.8 per cent in the last quarter.

David Nagel, QV general manager, said: "Affordability constraints are a key factor behind this slowdown, particularly in areas such as Auckland City which has an average value of $1,230,817. The strongest value growth are generally being seen in areas such as Rotorua and the Hawkes Bay."