The latest statistics from the REINZ show that Auckland’s median house price has increased by 26.9 percent in the past 12 months, from $905,000 in May 2020 to $1,148,000 in May 2021 – another new record for the city. Month on month, there was a 2.5 percent increase, compared to April. There are now only two districts in the Auckland Region where the median house price is less than $1 million – Franklin District ($822,000) and Papakura District ($900,000), with Waitakere City now joining the million-dollar club with a new median record of $1,050,000 in May.
Sales volumes in Auckland are also up – 3.7 percent month on month, 133 percent year on year. These statistics should be looked at in context, however. In her monthly report, Wendy Alexander, REINZ Acting CEO, says it’s worth noting that some of the annual sales volume comparisons are still a little skewed by the impact of the COVID-19 Level 3 lockdown in May 2020, so it won’t be until next month that we get a clearer picture of how things are really going. Looking forward, she expects sales volumes to remain relatively stable over the winter months. “However, if we don’t get more listings coming onto the market, it could be a very quiet winter indeed,” concludes, Alexander.
Supply is clearly still an issue. In May, Alexander says there were less than 15,000 properties available for sale across the entire country. This is the second-lowest level of total inventory since records began.
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Out in the suburbs, our agents are reporting quieter open homes, on average; normal for this time of year, as the cooler, damper weather sets in. First-home buyers are still active and keen to get onto the property ladder. Conversely, agents have noticed a slight drop in investor activity – an understandable response to the new government restrictions on investment properties.
On that topic, given new builds are both exempt from tax changes and still fall into the five-year bright line, both investors and first-time buyers are showing greater interest in this sector of the market. Developers, too, are also very active, as they look for suitable sites for new builds.
Feedback from our auction room is that numbers have remained strong throughout May. Damerell Group’s specialist team leads the opposition in this area of sales method, with an 89 percent success rate (78 percent sold on the night, 11 percent sold prior). The proportionally high number of properties sold prior to auction underlines the thirst that buyers have for all types of property in Auckland right now.