July sales volumes at Auckland’s biggest real estate agency, Barfoot & Thompson, are the highest they have been since July 2015, with 1095 properties sold.
“This is a level of sales normally only seen at the height of the summer sales season and is only one property less than we sold in March, which was prior to the on-set of Covid-19,” says managing director Peter Thompson, adding that the extent of activity would have caught most forecasters by surprise.
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“I think we’re proving a few economists wrong. I’ve always believed the market will hold its own. There’s a general shortage of stock, low interest rates and people putting their money back into property, because they can’t travel. [Property] is a good avenue to be investing in.”
New listing numbers, which had been holding sales figures back, have also climbed at Barfoot and Thompson: at 1518 they were a third higher than July last year, and again, the highest July for five years.
“They give buyers a reasonable choice, what we’re listing we’re selling. It’s at price points right across the board, from $800,000 to $1.5 million to $1.75 million," Thompson says.
“There’s been a big increase in the expensive properties, but, equally, first home buyers are back in and movers are either upgrading or downsizing to pay off the mortgage while interest rates are so low.”
The average sales price of $979,189 is the company’s second highest on record - 2.7 per cent up on June and 6.5 percent ahead of July last year, although the median price at $890,000 is down 2.2 percent on June but up 11.2 per cent on July 2019.
Thompson says new developments around Papakura, Takanini, and Karaka in the south of the city, and Milldale and Millwater in the north are performing particularly well. As well, rural and lifestyle sales, which he says tend to “sit back while there are tough times” are now a bit more positive: both sales volume and value were the highest for July since 2016.
He says that the market is not being tempered by medium term economic concerns or the approach of general election.
“It’s a little bit early for the election effect, you could see it in a month or two if the incentives come out, it depends on the party mix or housing policies [announced] as they get closer could slow the market for a short time. It’s still early days.”
Thompson says the outlook for August is relatively positive, so it is a good time for people to be selling. Further out, he is advising people to “take each day as it comes”.
