Following negative annual movement in May, the median price in Auckland increased 0.5% compared to June last year from $1,150,000 to $1,156,000 in June 2022, according to REINZ’s latest figures. Auckland also recorded a month-on-month increase of 2.8% — up from $1,125,000 in May.
More good news is that for the first time in a while, agents are reporting first home buyers are more active in the market, due in part to the impression house prices are easing along with a better understanding of the current market cycle.
Sales numbers, however, are down by 43.3% annually, from 2,853 to 1,618 across Auckland. Jen Baird, CEO REINZ says this decrease is expected over the winter months as part of the normal annual property market cycle. However, the seasonally adjusted figures moving from May to June show a 5.8% decrease — so, while sales activity was still below expectations, the drop isn’t as stark.
“With more stock on the market, more opportunity for negotiation, and prices off their peak, for those with access to finance, there is opportunity here,” says Baird. “Reports from real estate professionals across New Zealand suggest owner occupiers remain strong in the market. First home buyers are remerging — their confidence boosted by current dynamics and the Government’s May Budget announcement, which increased the cap on the price of property eligible for a First Home Grant and the removal of caps for First Home Loans. Investors remain quiet, for now.”
For vendors motivated to sell, Baird advises to seriously consider taking guidance from real estate professionals operating at the coal face to understand market sentiment. This may involve presenting a property in a particular way or adjusting price expectations to allow the agent to conduct negotiations with vendors that lead to a sale for the best possible price.
“There is much more negotiation happening in the market today as buyers are more cautious of potential price declines after they have purchased, and vendors understandably want the best prices possible in an uncertain market.”
Despite a decline in our auction activity over the past few months, auctions remain the go-to choice for motivated buyers. “Auctions attract serious buyers,” says Baird. “And while you need to be able to buy unconditionally to be successful under the hammer, serious buyers who can only buy conditionally are now being successful in the days post-auction.”
Market update from Damerell Group
You would be forgiven for holding the view that the dreaded winter chills extended beyond our physical and mental selves, sprawling like tentacles into almost every sector of our local and wider economy. It’s felt pretty bleak, hasn’t it? Nevertheless, as a naturally positive person, Auckland’s median price increase from May to June felt like it deserved a small celebration! Encouraging news, and important to remember real estate in winter typically brings together our most motivated sellers and buyers. Many real estate professionals will tell you that the savviest among these parties often choose this time of year to transact - if a property looks and feels great in winter, imagine the potential in summer!
While our own statistics show that there were an increasing number of our sellers choosing private treaty or set date of sale as a method of sale, buyers continued to support our auction campaigns with a staggering 84% of open home inspections taking place across our auction properties, whilst all other methods rounded up the 16% balance. The priority for any seller in the current market is to ensure the messages being conveyed to buyers reflect authentic motivation. We are meeting and interacting with many genuine buyers, in favour of transacting with genuine sellers. This, together with ‘days on market’ being less for our auctioned properties suggests auction as a method of sale continues to provide an overall better result. Furthermore, choosing auction as a method of sale with us, ensures that a seller is six times more likely to sell their home within the first month of marketing, than with any other method!
To conclude on a high note, June is traditionally the ‘hump month’, so the good news is we’re over the hump and warmer climes are ‘potentially’ on the horizon!
Damerell Group Sales Director