Strong trading month in rural and lifestyle property market

“While prices in June remained solid and sales numbers were modest, there were a number of underlying trends that suggest greater activity was building that has been present over the last few months,” said Peter Thompson, Managing Director of Barfoot & Thompson.

A strong trading month in the rural/lifestyle property market and increased buyer activity in the Auckland urban area were features of June trading as the property market settled into its winter trading pattern.

"While prices in June remained solid and sales numbers were modest, there were a number of underlying trends that suggest greater activity was building that has been present over the last few months," said Peter Thompson, Managing Director of Barfoot & Thompson.

"There are more first-time buyers looking, there is a shortage of properties in the $800,000 to $1 million price segment resulting in competition for properties, vendors are more inclined to meet the market and the banks are showing more interest in lending.

"All are positive signs for vendors who are prepared to price their properties at the market.

"The average sales price in June was $939,945, up marginally on that for May and on the average for the previous three months.

"The median price at $845,000 was marginally down on the average for last month but well in excess of the average price in June last year.

"Sales of properties in the $1 million and $2 million price segments sold well during the month and represented 34.6 percent of total sales.

"Only 6.4 percent of homes sold for under $500,000.

"Sales numbers for the month at 786 were down on those for May but were influenced by the onset of winter, and the shortage of new listings and housing stock.

"New listings for the month at 1012 were down on those for the previous month and for the same month last year.

"At month end we had 4085 properties on our books, the lowest number for 10 months.

"The rural and lifestyle markets to the north and south of Auckland enjoyed one of their better months this year with more than $61 million worth of property changing hands.

"This is the highest value of rural and lifestyle sales since November last year and underlines that when priced at market properties will sell.

"It is the second consecutive month that the rural and lifestyle market has enjoyed good trading, and this comes on the back of quality listings made earlier in the year.

"The rural and lifestyle market is currently experiencing a decline in buyers in the $2 million plus price segment, but it has been replaced by strong interest from buyers in the $700,000 to $1.5 million price category.

"Developers are being far more selective in terms of the opportunities on offer and taking longer in terms of their decision making.