House price growth in Auckland grinds to a halt

Residential property prices in Auckland stalled in November, marking the end of consecutive monthly rises dating back to 2009, according to one of New Zealand’s biggest estate agents.

Barfoot & Thompson report that Auckland’s average sales price in November fell to NZ$933,130 (£523,465), down 1.1% on October and just 1.1% higher than the average price for the previous three months.

“Signs the rate of price increase has been slowing have been there for some months but November's sales data confirms that for the time being at least, Auckland prices have stopped rising,” said Barfoot & Thompson managing director Peter Thompson.

“Both the average sales price and the median price in November were down on those for October,” he added.

What puts November’s lower prices into context is that November and December are traditionally when prices peak for the year, and this is the first time in eight years that November’s average and median sales prices – which dropped 1.7% to NZ$850,000 – have been below those for the previous October, according to Thompson.

He added: “Encouragingly new listings at 1879 have been strong and sales numbers at 947, while down marginally on the same month last year, were sound and up 21.7 per cent on those in October. The market is not over reacting to the changes occurring.  

“Clearance rates under the hammer at auctions were 30% in November with another 20% being sold in the 24 hours following auction. Those sellers who were realistic and prepared to trim their reserve price achieved sales and buyers were confident in meeting near record prices.”