House prices average $1.108m in August for Auckland’s biggest real estate agency

Auckland’s biggest real estate agency says house sales in August were better than expected.

And it said a combination of spring optimism and lower interest rates could charge up the market.

Barfoot & Thompson today said sales and listings outperformed seasonal expectations, and prices were stable.

Its median sales price last month was $952,500. That was 3.1% lower than in August 2023.

The average price was $1,107,837, down 1.6% on July but 2% higher than August last year.

The agency sold 889 properties across the city, the highest number for August since 2021, and had 1454 new listings in the month.

“All indications point to the subtle confidence we have seen return to the Auckland residential housing market in the past few months continuing to grow as we enter spring,” said the company’s managing director Peter Thompson.

“We are coming into a new season in a market where vendors and buyers have reached a consensus that the market is stabilising price-wise, and the more mortgage interest rates ease back, the more active the market will become,” Thompson said.

Several major banks have trimmed their home loan rates since the Reserve Bank cut the official cash rate to 5.25% in mid-August.

“Unquestionably, the market is stirring, and there is every reason to believe the more challenging times are behind us,” Thompson said.

“The rural and lifestyle market experienced its second-busiest month of the year during August, with total sales reaching $56 million,” he added.