Priciest homes sell as first-time buyers squeezed out

There is strong demand for Auckland’s most expensive houses, the city’s biggest real estate firm has revealed.

Wednesday, December 3rd 2014, 12:00AM

by The Landlord

Barfoot and Thompson’s latest statistics show the market was at its most active for the past six months in November, with house sale numbers up 17.7% compared to October.

The average sale price reached a new record of $756,909. The median was $691,500, also a record. The average price was 10.6% higher than November 2014.

“For the previous three months the uncertainty that always exists around general election time was influencing sales, but the market put that behind itself by November,” said Peter Thompson, the firm’s managing director. “November is normally one of the strongest sales months of the year, and has proved to be again this year. Attendance at auctions was extremely high, there was keen buyer demand and new listings were strong.”

The 1105 sales in the month was the highest number since May and 18.1% higher than the average number the agency had recorded over the previous three months.

Thompson said: “The current record sales prices are not proving a deterrent to buyers, with demand at the top end of the market being extremely strong. We sold 225 homes for in excess of $1 million, only the second month we have ever sold more than 200 homes in a month in this price segment. This year, we have sold a third more homes in the $1 million plus category than we did at the same point last year.”

New listings jumped, too. There were 1693 new listings in November, the third-highest monthly total in the year and 20.7% higher than the average number of new listings in the previous three months.

“It provided greater choice than there has been since April,” Thompson said. “At month end we had 3303 homes on our books. While this will contribute to an active month’s trading in December we anticipate sales numbers and prices to edge lower during the current month.”

Properties under $50,000 made up 20.4% of total turnover.

Thompson said that was the lowest number of sales in the price category in any month this year and reflected the challenge faced by first-home buyers trying to meet the LVR ratio.

« Prospects lift for Rotorua

Asking prices hit record »

Special Offers