Top End Buyers Return To Auckland Residential Housing Market

The Auckland housing market is the latest sector to show an improvement in economic activity, with November's prices being the highest recorded this year.

"There was a marked increase in prices during November with buyers returning in strength to the top end of the market," said Peter Thompson, Managing Director of Barfoot & Thompson.

"The median price for the month at $995,000 increased over that for last month by 4.7 percent and the average price at $1,181,829, increased by 9.5 percent.

"They are the largest monthly increases we have seen this year and have broken a 4-month hiatus where prices showed little movement.

"While sales activity and prices invariably increase modestly in November as we head into the Christmas and New Year break, this year's increase was based on a change in sentiment as to future market direction.

"The improved prices led to a subtle shift from it being a total buyers' market, with buyers sensing that now might be the time to act.

"Sales at 969 for the month increased by 4.2 percent on those in October and were 2 percent higher than the average number for the previous 3 months.

"A feature of November's trading was the return to the market of buyers in the $2 to $3 million price category. In November we sold 71 homes in this price category, more than double the number sold in the previous month. We also sold 21 homes for more than $3 million.

"While sales of property in the under $750,000 price category remained popular, they accounted for 22 percent of all sales. The average for the previous 3-months was 26 percent of sales.

"Participation in the housing market by buyers in the top end of the market has been quiet for many months but they are now starting to return.

"New listings remained positive at 1867, and our month end stock of 6102 was an increase of 1.3 percent on that at the end of the previous month.

"Rural and lifestyle property sales also experienced a lift in sales activity with sales for the month at $49 million, an increase of 28 percent on October's sales."