Auckland house prices hit record high, Covid had ‘negligible’ impact – Barfoot & Thompson

Auckland was at alert level 3 for more than half last month, but the city’s largest network of real estate agencies said the lockdown had little effect on property deals and a new all-time high was set.

Peter Thompson, Managing Director of Barfoot & Thompson, said: “The latest Covid Level 3 closure restrictions in Auckland had a negligible impact on residential property activity in August, with prices hitting a new all-time high and figures sales were the highest for August in five years. “

The median sale price was $ 995,543, up 1.7 percent between July and August and 7 percent more than at the same time last year, he said. The price was also $ 2000 higher than the last all-time highest price recorded in March of this year.

The median price of $ 911,500 was 2.4 percent higher than last month, 9.8 percent higher than last year, and the third-highest median price in history.

READ MORE:
• Home sales fall almost 50%, but prices remain at record levels
• Auckland prices down 0.1%, New Zealand up 3.4%: Real Estate Institute compares June sales with July
• Barfoot & Thompson data: Auckland house prices, volume increase
• Covid-19 closing toll: the number of home sales falls by 78.5% but activity recovers again

Volumes for August were 1,055, 3.7 percent less than in July, but 41.4 percent more than in August last year, it said.

“The operations in August were exceptional and, from a price perspective, even better than in July. Most of the suppliers were prepared to move to the alternative sales methods that we were able to offer and were largely unaffected.” said.

Demand from buyers was strong and consistent, and for the second month in a row, sales figures for this time of year were at a level last seen at the height of the last real estate cycle.

“In part, we were able to sustain the excellent trading through online technology that has been perfected since the first lockdown, such as online auctions and some relaxation of government restrictions on final legal paperwork.

“Many found the shift from ‘in person’ to online trading to be relatively smooth, and those who were prepared to try it found that they could make it work for them.

“With the relaxation of regulations, more traditional sales methods have now been reintroduced. It means that the market from now on will have an alternative approach to online sales that will sit alongside the more familiar way of doing business,” Thompson said.

“Available listings are becoming a problem. Although new listings in August were positive at 1,354, we had only 3703 properties on our books at the end of the month, our lowest number since February this year.

“Sales were strong in all price segments and in all suburbs and districts,” Thompson said.

The agency sold 60 homes for more than $ 2 million and 454 for more than $ 1 million. Sales of more than $ 1 million accounted for nearly half of all the agency’s sales last month. She also sold 84 houses for less than $ 500,000.

“The rural property and lifestyle markets also experienced high levels of business, with sales figures 77% higher than in August last year.

“There is a growing understanding that lifestyle and rural properties represent good value for money relative to current urban residential prices, generating interest among Auckland buyers for properties in North Auckland and beyond. South as well as North Waikato. The bare ground is also attracting developer attention, “Thompson said.

Today’s data was distributed after sales that exceeded expectations lately.

For example, a Blockhouse Bay home on a large site last month was 73 percent above its recorded valuation, leaving the seller in tears of joy.

Kevin He of Barfoot & Thompson said the property at 5 Matata St was valued at $ 1.9 million, but a pre-auction bid of $ 2.03 million brought the auction forward.

Even with a $ 2.03 million offer on the exchange, the seller was extremely happy. Said, “That became the seller’s reserve.”

Eleven people had signed up for the auction, and each had an agent on the phone, taking their bids from auctioneer Marian Tolich, he said.