Barfoot & Thompson’s average selling price of $876,075 in November was up 4.2% compared to October’s average price of $840,402. Last year, the average selling price was just $756,909 in November, meaning the average selling price rose by $119,166 (15.7%) in just 12 months.
The median price of $795,000 over the past month was also a new all-time high and was up 1.9% compared to October’s median of $780,000.
However, although the average selling price of Auckland homes sold by Barfoot & Thompson hit a new all-time high last month, the total number of homes sold were significantly down. Just 986 homes were sold, down 8% from 1068 in October, and down 11% from 1105 in November last year. This made last month the slowest November month for sales since 2011.
SO WHAT DOES THAT SAY ABOUT MARKET ACTIVITY?
In October the market activity slowed and that trend continued into November. New listings were down (1683), being 7.5% lower than October’s and the lowest number in the past seven months.
According to Barfoot and Thompson, the most affected properties in November were the ones priced between $500,000 and $750,000, which was a popular price bracket with investors that had portfolios of less than three properties. Barfoot & Thompson sold 286 homes priced between $500,000 and $750,000, down 19% compared to the 353 that were sold within the same price bracket in October.
SO WILL THESE PRICES CONTINUE TO OVERLOOK TIGHTER REGULATIONS?
ASB economist Kim Mundy said there were now two months of data suggesting that the weakened demand in the Auckland housing market were correct.
“However, the fall in sales has been accompanied by a fall in overall housing inventory, which is keeping a degree of tightness in the market. And indeed, the increase in average house prices in November suggests that the market is still out of balance and price pressures remain,” Mundy said.
What will 2016 bring for the housing market? Will the market rise or will it finally plateau and drop? Any feedback, inquiries or comments are welcome. Please email Simon at firstname.lastname@example.org.