Barfoot & Thompson says Auckland housing market now fully priced

There was no sign of the winter downturn at Barfoot & Thompson branches in July, with the number of properties sold up strongly although the average price was flat.

Barfoots sold 1388 residential properties in July which was the highest number since the summer peak of 1597 sales in March and put July’s sales 41% ahead of July last year.

The average selling price was $827,359, which was a new all time high but only marginally up on June’s $826,474.

However the median selling price dropped to $757,000 in July from $786,000 in June but was still the second highest monthly median ever.

The number of new residential listings the company signed up was flat, with 1777 new listings in July compared with 1749 in June and 1740 in May, but well ahead of the 1396 new listings in July last year.

However, the supply of properties available for sale remains tight, with Barfoots having 2802 homes available for sale at the end of July,which was the lowest number since December last year and well down on the 3273 it had available at the end of July last year.

“A stable average price over a three month period is a trend we have not witnessed for some time,” Barfoot & Thompson managing director Peter Thompson said.

“The combination of high turnover and stable prices points to buyer confidence in the strength of the market at current prices but also recognition that property is fully priced.

“The last three months of trading also demonstrates that high sales numbers can be sustained without prices increasing.

“The first signs that price increases were slowing could be seen in last month’s sales figures, and this month’s results confirm that prices are no longer racing ahead.”

Thompson said the number of homes the company sold in July was the highest of any July since 1999 and was also 4.5% higher than July 2003 which was the most active year for sales on record.

The company sold 411 homes for more than $1 million July but only 200 homes for less than $500,000.