Auckland property prices dip - but for how long?

Photo: Craigsydnz

Auckland property prices have dipped at the start of 2016, according to new figures from estate agents. Barfoot & Thompson's latest report shows that the median sales price in February 2016 was $738,000, down 2.9 per cent on the previous month, as the Auckland area continued to show signs of coooling after hitting record highs last year.

The dip, though, may only be temporary, with prices already higher than they were at the same time a year ago.

"The average sales price at $822,024 in February was up 1.3 per cent on the average price for January and up 10 percent on that for February last year," says Peter Thompson, Managing Director of Barfoot & Thompson.

Over the past nine years, meanwhile, the market has followed a cycle of prices falling in the first quarter of the year and then rising from autumn onward. Values in the coming months, therefore, are predicted by the agency to build modestly.

"We have now had two months of trading where prices have been higher than they were in their equivalent months last year, and in the past that has meant prices have risen throughout the year," adds Thompson.

"The most significant figures in February’s data were that sales numbers stalled and new listings doubled."

"The number of properties sold at 698 was the lowest in any month for 3 years. The reason was that at the start of February the number of properties on the market was at its lowest number for 20 years, and buyers had limited choice," he continues.

"However, as the month progressed more properties were listed, and we finished the month with 2,060 new listings, the highest number in the past six months. There are currently an extremely high number of properties in the pipeline for settlement in March and April."