In the first full month of trading permitted after the easing of COVID-19 restrictions, Auckland house prices showed minimal change to pre-Covid prices, says Barfoot & Thompson Managing Director Peter Thompson
What did change significantly was the number of homes sold. In May we sold 396 homes, about half the number we sold in the same month last year and around three quarters of those we sold last month.
However, the sales numbers do not show the full picture as they are for unconditional and commission paid sales only. The pipeline of conditional and non-commission paid sales from May is strong, and these sales will show up in June’s results.
Sales of properties for in excess of $750,000 accounted for two thirds of all sales in the month, and the sale of properties for in excess of $1 million made up nearly a third of all sales.
The average price at $947,707 was down 1.6 percent on that for April and 2 percent higher than for the same month last year. The median price at $914,000 was up 1.6 percent on last month and up 7.5 percent on that in May last year.
The lifestyle and rural property markets showed positive signs of re-emerging from the Covid slow down and in May sales numbers were double those achieved in April.
The Pukekohe area saw strong sales numbers, with multi-offers on several properties, while open homes were active around Kumeu and Coatesville.
Listings are slow to come on the market and there is a marked shortage in supply of small lots.
The number of new listings for the month was 1097. While down 7.5 percent on those for May last year, it is a number that does not support the view that investors will abandon the housing market in large numbers in the post Covid era.
At month end we had 3821 properties on our books, in line with month end listings for the previous three months.
Overall, the Auckland market’s initial reaction to the Covid interruption has been uneventful.
Sales are taking place but given the extended nature of the transfer process, are not yet showing up in completed sales data, and prices are not under pressure.
It will likely be another month before the market settles down and for a firmer indication of the future trading pattern to emerge.
