“Eager buyers returned to the Auckland housing market in May, with property sales being their best in a month since May last year,” he said.
After a dismal month’s trading in April, when sales hit their lowest in an April for 22 years, sales of 723 in May were not far off what was being achieved at this time of the year pre-Covid, he said.
“May’s sales are another sign that the Auckland property market has either hit the bottom of the current cycle or is close to it,” Thompson said.
Sale prices flat
But sale prices did not rise: April’s average of $1.08 million fell to $1.07m in May, down on January and February’s $1.11m and March’s $1.10m.
Thompson stressed volumes over prices.
“While both the median and average sales prices for the month eased on those for April, it was the number of sales that is the standout feature with sales being a third higher than for the average monthly sales for each of the past three months. It shows buyers are not shying away from paying current mortgage interest rates,” he said.
Yesterday, the Herald reported how the tide may be turning on falling values when three analysts judged fresh real estate data showed a possible floor being reached.
OneRoof, CoreLogic and ANZ Bank issued reports pointing to potentially better times ahead, despite interest rates likely staying higher for longer.
The OneRoof-Valocity House Index showed New Zealand’s average property value fell 2.3 per cent or $22,000 to $950,000 in the three months to the end of May, as successive interest rate rises put downward pressure on prices.
Auckland’s average value fell a further 3.2 per cent or $43,000 over the quarter to $1.29 million, but there were some bright spots with Northland, Otago and West Coast enjoying lifts in their average property value, while the rate of decline slowed in Canterbury, Taranaki and Wellington.
CoreLogic said property values fell nationwide in May but the rate of change had eased.
ANZ’s economists forecast annual house prices to increase 0.1 per cent in the December quarter, an earlier turnaround than June 2024 quarter increase predicted just last month.
Thompson said today the median sales price for May of $955,000 is down 4 per cent on that for April while the average price at $1,070,819 is down 1.5 per cent on that for last month.
“While the median price paid in May was down 15.1 per cent on that 12 months ago, the average price was down much less at 10.9 per cent.
”Vendors will be encouraged that prices have now reached that point where more sales are being made and support the recent comments by the Governor of the Reserve Bank that house prices are at ‘more sustainable’ levels,” he said.
The agency listed 1262 properties in May, close to the average during the last three months.
Once sales numbers start to increase, we can anticipate potential choice will start to decline, he said.
“Buyers have returned to the high end of the market, with 31 homes being sold in May for more than $2 million, the second highest number of monthly sales in this price category this year,” he said.
·Sales in the under $750,000 price category were also in demand, with 148 sales registered.
Correction: An earlier version of this story used the term median, instead of average, when comparing sale prices.
