Auckland property prices drop in July

Barfoot and Thompson real estate signs. Photo / Richard Robinson

Barfoot & Thompson's median Auckland residential sales price plunged $29,000 in the last month, from $786,000 in June to $757,000 by July and the agency's boss says that is a sign of the market slowing.

Peter Thompson, Barfoot managing director, said the price drop had been gradual.

"The first signs that price increases were slowing could be seen in last month's sales figures, and this month's results confirm that prices are no longer racing ahead. In fact, the median price in July at $757,000 is down $29,000 on that for June, but up $7000 on that for May," he said.

The Barfoot figures contrasted with the QV data out yesterday showing Auckland average values rising $511 a day.

However, Barfoot and QV are using different measures to gauge activity in the market, Barfoot's using the median sale price while QV uses the average value.

Thompson said sales volumes had been high.

"What continues without pause, however, is property turnover, and in July we sold 1388 homes, 18.9 percent higher than the number in June and 41.2 percent higher than in July last year.

"It is the highest sales figure for a July going back to 1999, and 4.5 percent higher than in July 2003, the year normally regarded as the most active on record.

"New listings at 1777 were the second highest for any month this year (the highest being in March at 1997), and were 27.3 percent higher than in July last year," Thompson said.