Auckland’s November sales at four year high

The real estate agency saw 960 sales in November, which was a 16.5% increase on October’s 824 sales and a 2% increase on the 941 sales seen at the same time last year.

Barfoot & Thompson director Kiri Barfoot says sales were the highest in a month since March this year and the highest they have been in a November since 2015.

“Activity has not returned to the heydays experienced at the height of the previous price cycle but Auckland sales have certainly shrugged off the modest turnover and price movements experienced over the past two years.”

The results, which show committed buyers have returned to the market, were foreshadowed by strong sales in October, and the lift the market received then has flowed into significantly higher prices in November, she says.

November’s median price of $891,000 was up by 5.8% on the average for the past three months and by 4.7% on last November’s median price of $850,750.

The average price of $963,671 in November was up by 3.5% on the average for the last three months and by 2.8% on last November’s average price of $937,792.

According to Barfoot, monthly price increases of this size were last seen when the market was at its strongest in 2016 through to the early part of 2017.

But a contributing factor to the price increases is the declining pool of properties on the market.

“In November we listed 1,517 new properties and, although this is one of our higher monthly numbers this year, it is our lowest in a November for 11 years,” she says.

“At month end we had only 3,703 properties on our books, close to a quarter lower than we had at the same time last year.

“The end result is that when high quality properties reach the market there is determined competition among committed buyers which is driving prices higher.”

The agency has a high number of signed up and conditional sales in the pipeline, Barfoot  adds.

“So the prospects of November being a rogue month is unlikely and we see an active market remaining through to year end and continuing into the first quarter of 2020.”