March was the busiest month’s trading the Auckland housing market has experienced for five years.
Barfoot & Thompson sold 1246 homes in the month, up 63.1 percent on sales achieved in February and up 16.4 percent on those in March last year.
The average sales price for the month was $571,076, up 6.5 percent on February but down 1.7 percent on March last year.
“March was a month where the views of buyers and sellers reached common agreement as to where values were at, and we experienced the highest level of sales since March 2007,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“The average price is also the highest it has been since December 2011.”
“Prices at this level, accompanied by high turnover, is an indication of the confidence buyers have in the long-term value of Auckland property.”
“The growing population, confidence the economy is improving and affordability at current historically low mortgage interest rates are all factors that are pushing market activity.”
Mr Thompson said the fact that this March’s average price was $10,000 below the average for March last year and $2000 below December’s were indicators that prices were not spiralling.
“For the past two years, the March average price has been the highest for the year, and a contributor to the positive prices achieved in March is the effect the seasons have on house sales and values.”
“While prices may move from month to month, the overall trend remains one of a modest increase year on year.”
Sales in the million dollar plus category remained strong, and Barfoot & Thompson sold 99 homes for in excess of $1 million.
“It was the highest number of million dollar homes we have sold in a month since March 2007, and brings the number for the past three months to 180, which is 29.5 percent higher than for the first quarter last year.”
“Sales activity in the under $500,000 category was also high, and we sold 628 properties in this price category during the month.”
The high number of homes sold in March is again placing pressure on choice, and at month end the company had 4771 homes on its books in spite of listing 1537 new properties during March.
“Our number of listings at the end of March is down 17.8 percent on those for last March, and is the lowest we have had at this time of the year for four years.”
“Buyer interest remains strong.”