Sales growth continues in September, strengthening confidence in a housing recovery as buyers regain their appetite

Since growth first emerged in August, Auckland housing sales have maintained growth for two consecutive months, with property sale prices holding steady in September.

Barfoot & Thompson managing director Peter Thompson said: “September was another modest but positive sales period on the road to a recovery in house prices.”

During the month, 825 properties were sold, making this the past 21 months' second-highest monthly sales total. Although sales were down 6.1% from August, they were a third higher than in September last year. 

The month’s median sale price was NZ$987,000, unchanged from August, suggesting that the downward house-price cycle may have ended.

The median price has risen for two consecutive months, sitting 3.4% above the July median of NZ$950,000, which was the lowest in nearly three years.

The average sale price in September was NZ$1,058,771, down 2.7% from August. 

With the general election over and summer approaching, we can expect to see the usual post-September seasonal rise in house prices again。

We are seeing more properties coming onto the market, particularly higher-priced homes, along with a return of buyers’ appetite for purchasing. This, in turn, will bring increased sales volumes and more competitive bidding at property auctions. 

As Christmas approaches, the property market’s prospects for a healthy recovery are bright。

Properties valued below NZ$750,000 featured prominently in September sales, accounting for 26.3% of all sales.

This highlights the growing prominence of apartment and townhouse sales in the Auckland market, as well as a substantial increase in the number of properties available to first-home buyers。

The shift in focus from buying standalone properties to homes on sites containing multiple dwellings has, for many people, lowered the barrier to home ownership。

At the upper end of the market, 41 properties sold for more than NZ$2,000,000, including 9 that sold for NZ$3,000,000 or more. 

The market continues to offer buyers a wide choice, with 4192 properties on our books at the end of the month.

There were 1469 new listings during the month, the second-highest figure this year.

“The rural and lifestyle property market in Northland and the areas around Auckland started the month slowly, but picked up from mid-month, with the value of sales reaching twice that of the same month last year. Bank lending for rural properties remains a challenge for many prospective buyers.”