Auckland property sales set new price records in April

For the first time the average price paid for Auckland residential property has risen above $800,000. 

"While trading activity in April was significantly down compared to March’s extraordinary sales, Auckland residential property prices during the month rose to new heights,” said Wendy Alexander, Chief Executive Officer of Barfoot & Thompson. 

“The average price increased to $804,282, which was an increase of 3.5 percent on that for March, while the median price at $753,500 was an increase of 6 percent. “Since the start of the year, the average price has increased by 6.2 percent and the median price by 7.6 percent. 

“While these are significant increases, they are not out of the ordinary in that they are similar to the levels of increase experienced over the past two years. More top end properties are sold in the summer/autumn months than in the second half of the year, and this results in the average price easing back after strong starts to the year. 

“Our average sale price increase over the 12 months ending April 30 is 13.5 percent. “Demand for property remained rock solid in April, and is reflected in the prices buyers were prepared to pay. Sales numbers during the month at 1070 were the highest they have been in an April in the past decade.

“New listings for the month at 1580 were in line with new listings in April for the past two years. “At month end we had 3151 listing on our books, which means that after improving in February and March we enter May with the lowest number of properties since January. Lack of choice is again becoming an issue. 

“During April we sold 314 properties at prices above a million dollars, the second highest number on record. “157 homes sold during the month went for under $500,000, which represents 1 in 7 of all homes sold. There is a good choice of homes in this price category but LVRs often mean potential buyers cannot meet the home deposit requirements. 

“LVRs are materially affecting the sale of affordable homes.”