Auckland Housing Market Insights July 2024

According to Stephen Barfoot, Director of Barfoot & Thompson, a significant number of buyers were drawn into the Auckland residential housing market in July, attracted by growing confidence that interest rates have peaked.

Strong Sales in Traditionally Slow Month

Barfoot noted that in July, a growing number of buyers decided that with mortgage interest rates falling and at current prices, now was the time to act. He stated that in what is traditionally the slowest month of the year for sales, they sold 902 homes in July, nearly a third more than the previous month and a quarter higher than the same month last year. Barfoot added that in the last seven years, only in 2022 and 2021, when prices were on the rise, have they sold more homes in the depths of winter.

Vendors Meeting the Market

Barfoot explained that buyers were attracted by a combination of vendors being prepared to meet the market and anticipation that prices may be at their low point given recent movement in mortgage interest rates. He stated that those vendors who listened to their salesperson and were prepared to meet the market saw results and capitalised on the increased buyer activity.

Median and Average Prices

The median sales price in July was $970,000, which Barfoot noted is a fall from the previous three months but 2.1 percent above last July’s median price, which marked the bottom of the last price cycle. The average price at $1,127,639 was also down on the previous four months but 5.7 percent higher than in July last year.

Increased Buyer Confidence

Barfoot mentioned that commentary around lower inflation numbers and the promise of further interest rate cuts led to an increase in confidence among buyers, and they saw the re-appearance of multi-offers across the network. He believes this has laid the groundwork for a positive start to the approaching spring selling season.

Price Segment Focus

Barfoot noted that there was a greater focus on property in the under $750,000 market in July, with 22.3 percent of sales in this price segment. He added that sales in the $2 million plus price segment accounted for 5.2 percent of sales.

New Listings and Inventory

New listings continue to reach the market, with listings in the month reaching 1,518, the sixth consecutive month new listings have been above 1,500. At month end, they had 5,446 properties on their books, a third higher than at this time last year. Barfoot also mentioned that the rural and lifestyle markets experienced a modest increase in interest in sales activity in July compared to the previous three months, with total sales reaching $53 million, their highest monthly sales value in four months.