The low number of new property listings and the total number of properties for sale in July has produced the tightest property market for choice in Auckland for four years.
“While choice is limited it is not holding back sales numbers, or contributing to higher prices,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“In July we sold what in the past few years has become the norm for house sales, and the average price was $530,191, which is around 1 percent lower than what we achieved in July last year.
“Overall, we have a stable market which is waiting for greater certainty in terms of when the economy will start to pick up.
“In July we listed only 1050 new properties, our lowest number in the last decade, and 8.9% lower than in June.
“At month’s end we had only 4830 properties on our books, and you have to go back nearly four years to find a month where choice was this restricted.
“While July’s average price edged up 1.8 percent on that for June it is right in line with May’s average price, and the average price spread across the past three months is less than $1000.
“Normally, the combination of buyers in the market and lack of choice would lead to prices increasing as buyers compete for available properties. Even though there are buyers out there, prices are increasing at only a nominal rate.
“Buyers are prepared to pay a fair market price, but not over the top.
“During the month we sold 778 homes. While this was down 10.9 percent on those for June it was also 20.8 percent higher than the number for July last year.
“For the past four years we have been selling between 650 and 780 homes in July, and this July’s sales numbers are sitting at the top end of the range.
“Our reading is that with buyers in the market, now represents an excellent moment in time in which to sell a property.”