Auckland house prices: Sales volume increased in June despite tough market - Barfoot & Thompson

Barfoot & Thompson sold 48 homes for more than $2m in June. Photo / Ted Baghurst

Auckland’s largest realtor says this cycle is one of the hardest the city has endured but prices and sales volumes ticked up marginally last month.

Peter Thompson, Barfoot & Thompson’s managing director, said June property sales were more in line with traditional pre-Covid patterns.

“The current housing market cycle is probably one of the hardest Aucklanders have been through in recent years and while it is still tough, there continue to be positive signs we are now entering into a period of more stability,” he said.

The agency recorded 711 sales last month, down on May’s 723 but ahead of April’s 473.

June’s average sales price was $1,097,896 which was 2.5 per cent up on May’s $1.07m. The median price, at $995,000, rose by 4.2 per cent compared to May.

“We are seeing an increase in multi-offer bids on properties and our auction rooms have been busy throughout the month. Although the increased activity is not driving up prices, it does indicate confidence is returning, which is great news for both vendors and buyers,” Thompson said.

The agency listed 1266 new properties for sale during June which is in line with what it would expect in winter.

It now has 4277 listings which Thompson said gave buyers a big choice.

CoreLogic’s latest house price index out today showed property values fell 1.2 per cent in June, down 10.6 per cent from a year ago.

“The market’s downswing continues to roll on, albeit unpredictably, as property values across Aotearoa NZ weakened in June,” it said. Nick Goodall, head of research there, said the acceleration in falls illustrated the impact of a long and strong rate hiking cycle as stretched mortgage affordability continues to constrain demand.

“We’re not expecting a flood of demand to lead to a strong bounce-back in prices by any means. Stretched affordability, due largely to still-high property values and high interest rates compared to recent history is likely to keep a lid on demand, which should lead to a much more stable and balanced market once the bottom is reached,” Goodall said today.

Treasury had forecast house prices to fall 13.4 per cent by the end of last month with another 4.6 per cent drop next year. If all that happens, from the top to the bottom of the market, house prices will have fallen 21.3 per cent, followed by a slow, slow climb back in house prices until 2027, of around 3 per cent each year.

It also expected a drop in investors buying homes to rent.

Thompson said Barfoot & Thompson sold 48 homes for more than $2m in June.

Properties under $750,000 were also in high demand and 180 places in that price category had sold last month.

The agency sold 24 rural and lifestyle properties in June. Although this is a relatively modest number, it’s the third busiest month of trading this year, Thompson said.

Overall, he said 2019 was the most relevant period to compare to the latest activity.

“When all recent house price rises and falls are taken out of the equation, the only period we can meaningfully compare current house prices to is 2019 when we were last in a true market-driven cycle.

“Both the average and median sales price achieved during June are around 17 per cent higher when compared to the same month four years ago,” Thompson concluded.

* Anne Gibson has been the Herald’s property editor for 23 years, having won many awards, written books and covered property extensively here and overseas.