Auckland property market shows little sign of life
The first of the monthly property data is in and it does not bode well for those thinking / hoping that the election in September had in some way held back the market and that the traditional Spring surge would arrive albeit late in October.
Sales as reported by Barfoot & Thompson were down on last month and last year. Now normally sales volumes in October are around 10% higher than sales than September, this year sales for Barfoot & Thompson in Auckland fell 2% compared to September and as measured against last October sales were down 22%.
October was the 9th consecutive month to show year-on-year declines in sales volumes. Measured on a 12 month moving average sales in Auckland for Barfoot & Thompson has fallen from a peak 12 month total of 13,232 in October last year to a total in the 12 months to date of 11,699.
Barfoot & Thompson is a fairly accurate bell weather for the national statistics which have seen the same trend of moving annual total peak a year ago and continue to decline through this year, resulting in what is looking to be a 2014 calendar year total sales of just 70,000 down from 80,000 in 2013.
Sales below $400,000
Delving into the richer analysis of property sales by price range shows a continuing trend of fewer sales in the lower price segment of the market in Auckland. Barfoot & Thompson October sales in the $400,000 and below segment amounted 126 of the 939 total sales in the month, that represents just 13% of all sales.
A year ago that segment represented 22% of sales and back in 2010 38%.
These numbers reflect the combined impact that as the median price creeps ever higher in Auckland (Barfoot &Thompson Oct '14 $655,000) there are simply less properties to buy and therefore to sell below $400,000 added to which the LVR impact has hit this segment. The $400,000 and below segment is fast disappearing from the Auckland property landscape.