The auction success rate for Auckland’s biggest real estate agency doubled in September, raising hopes of a spring turnaround in the city's housing market.
Barfoot & Thompson director Kiri Barfoot told OneRoof that 41.3% of the properties the agency brought to auction sold, more than double the winter average of around 20%.
“The market changed and some vendors were slower to change. They have to be ready to sell, and willing to sell at the market price,” Barfoot said.
“We’re definitely seeing more people go with the auction process because it puts a timeline on [the sale] and makes buyers go ‘I’d better make up my mind’.”
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Figures released this week show the agency sold 614 last month, 6.2% higher than August's total, but still slightly under the previous three-month average and 7.8% below the tally for September 2021.
The agency's median sale price for September dropped 4.2% from August to $1.064m, and new listings were down 6.7% over the same period.
Barfoot said prices were edging lower gradually rather falling sharply.
The good news, she said, was the return of first home buyers to the market. “They stopped buying in February, but the feedback is there are definitely more now," she said.
“If you want to buy a house, buy it. What are you waiting for when this is a 20- or 30-year home,” she said, adding that there was good buying under $1m now.
This month, 46% of sales were for properties priced under $1m – well up on the low 30% to 40% of sales in previous months.
“There are a lot of homes under $1m in blue chip suburbs. I’d say to first home buyers have a really good look around, there’s a lot to be said for a two or three-bedroom unit.” Buyers at this week’s Barfoot & Thompson auction rooms snapped up a handful of these finds.
Barfoot & Thompson direct Kiri Barfoot says auction clearance rates were up. Photo / Supplied
A four-bedroom villa in Mount Eden sold at Barfoot & Thompson auctions this week for $2.012,500 , as clearance rates pick up over spring. Photo / Supplied
While units in Meadowbank and Remuera failed to sell under the hammer, buyers found tidy buys: a three-bedroom unit in Lynwood Road, New Lynn for $665,000 (compared to a CV of $840,00) and two-bedroom units in Bertrand Road, Mount Wellington for $740,000 (CV $885,000) and one in Macleans Road, in Bucklands Beach, which fetched $890,000, $110,000 below its CV.
Over $2m buyers found a four-bedroom house in Pine Street, Mount Eden for $2.0125m. In September, Barfoot & Thompson sold 46 properties over $2m.
That's well down on the higher prices achieved back in September two years ago, as the market began to heat up. By September 2020, the company sold 84 properties over $2m, booming to 133 in December that as prices took off.
September’s lower median sale price reflects that change in the mix of properties sold.
Barfoot pointed out that the “solid” 1301 new listings coming to market in September, while down on August’s 1394, were 2% up on the average over July, August and September.
A smart unit on Macleans Road, Bucklands Beach sold for $890,000, $110,000 below its CV. Photo / Supplied
A renovated two-bedroom unit on Bertrand Road, Mount Wellington, fetched $740,000. Photo / Supplied
Buyers still have the most properties to choose from for some years, with the company now having 4567 properties on their books in September, higher than the three-month average and nearly 2000 more than the number of properties on the market this time last year.
“Who wants to sell in winter?” Barfoot said.
“Houses look better now, and people are realising if I want to sell before Christmas I need to list now. We can see that the October pipeline is filling up.”
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