What we can decipher from the ups and downs of these broad-brush statistics is that the Auckland market is showing remarkable resilience given the 100-plus day siege it has been under from the threat of Covid-19.
REINZ Chief Executive Jen Baird summed it up in a recent statement when she said: "Despite prolonged restrictions, the Auckland market seems to have found its rhythm again. The ability to conduct business remotely and eased restrictions around viewings have enabled real estate continuity, while a general FOMO — fear of missing out — stokes a market that remains strong.”
Baird went on to say that Lockdown restrictions are having a reduced impact. "Real estate professionals have the resources to conduct business remotely, and customers/clients have the confidence to move forward to make decisions. Steps by the Government — as advocated for by REINZ — to enable more private property viewings at Alert Level 3, for example, have helped — especially in areas longest affected by tighter lockdown. Comparing listing and sales activity over this lockdown to the country's first one, in 2020, shows a sharp difference. Namely, the impact has not been so severe, and the recovery has been quicker.”
This optimism is reflected in the latest median house prices stats that show Auckland has reached a new record high of $1,250,000 — a 25.0% increase from twelve months ago. Listings across the region are on the rise, too, which tallies with the usual seasonal surge as we head towards the warmer months. Those properties, however, are tending to spend longer on the market due to the time it is taking to show the sheer volume of interested buyers through homes with the Level 3 Covid-19 protections in place. Hopefully, these restrictions will ease in the coming weeks.
Auctions continue to trend upwards, with Auckland experiencing the second-highest percentage of auctions in New Zealand, with 44.8% (1,153) properties sold by auction in October (October 2020: 39.8% (1,288)); an increase on September 2021, when 30.6% of properties sold by auction (425) and highlights increased activity in the city.
We must note, however, that Damerell Group’s auction statistics far outperform the average. Annual figures show that our auction rooms have enjoyed an average 80% success rate on the night, with 9% sold prior and an average of five registered bidders per auction.
Whilst statistics can provide a good barometer of what’s happening in the market right here, right now, under the current Covid regime, it’s impossible to use them to make an accurate prediction of where the market may be heading in 2022. However, buyer demand remains very strong for good properties in popular suburbs. With restrictions easing and the borders (hopefully) opening up in the none-too-distant future, we expect this demand to only increase.