Barfoot & Thompson listed just 1050 new properties in July, 8.9% lower than in June and the lowest number for a decade.
In their July update the company said the low number of new listings and the total number of properties for sale in July had produced the tightest property market for choice in Auckland for four years.
"While choice is limited it is not holding back sales numbers, or contributing to higher prices," said Barfoot & Thompson managing director Peter Thompson.
"In July we sold what in the past few years has become the norm for house sales, and the average price was $530,191, which is around 1% lower than what we achieved in July last year."
Thompson said the market was stable and awaiting greater certainty in terms of when the economy will pick up.
"At month's end we had only 4830 properties on our books, and you have to go back nearly four years to find a month where choice was this restricted.
"While July's average price edged up 1.8% on that for June it is right in line with May’s average price, and the average price spread across the past three months is less than $1,000.
Thompson said that normally, the combination of buyers in the market and a lack of choice would push up prices as buyers compete for available properties. However, "even though there are buyers out there, prices are increasing at only a nominal rate."
"Buyers are prepared to pay a fair market price, but not over the top," he said.
Over July Barfoot & Thompson sold 778 homes, down 10.9% on June but 20.8% higher than July last year.
Thompson said over the past four years the company has been selling between 650 and 780 homes in July, with this July’s sales numbers at the top of that range.
"Our reading is that with buyers in the market, now represents an excellent moment in time in which to sell a property."
Source: Landlords.co.nzcomments powered by Disqus