Sharechat Logo

Auckland house sales stall in February, hitting 10-year low

Monday 4th March 2019

Text too small?

Auckland realtor Barfoot & Thompson had its quietest month in more than 10 years in February, with sales down 28 percent from a year earlier. 

Barfoot sold 474 houses last month, down from 665 in February 2018, the lowest monthly turnover since December 2008, a time when New Zealand's mezzanine finance sector was in the process of collapsing and the global financial crisis was in full swing. 

Despite the lack of activity, prices held up, with the median sale price down 2.3 percent at $801,000. Barfoot managing director Peter Thompson said vendors preferred to pull listings rather than accept lower offers. 

"The market is progressively hardening into a buyers’ market with a number of vendors preferring to take their property off the market when they cannot achieve their asking price," he said in a statement. 

Barfoot attracted 1,563 new listings in February, down from 1,747 a year earlier. By the end of the month, it had 4,660 properties on its books, compared to 4,648 in February 2018. 

Auckland is ground zero for the property market because it has a shortage of stock could to meet the needs of an expanding population, prompting policymakers to embark on a number of initiatives to address the imbalance.

That included the Reserve Bank imposing specific leverage restrictions on Auckland property investors, who have been blamed for much of the rapid price appreciation. 

About 2.7 percent of Barfoot's sales were north of $2 million, and another 27.8 percent were $1-2 million. About 12.7 percent were below $500,000. 

Thompson said the top end of the market tends to have a quieter start to the year, with new listings expected to show up in late February and early March. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years
Serko to accelerate cash burn with North American push
NZ dollar rises on lift in dairy prices
Dairy product prices rise, lifted by whole milk powder
A2 Milk says brand strength is its best protection
Chile still open for business

IRG See IRG research reports