Auckland house prices hit record, Covid had 'negligible' impact - Barfoot & Thompson

Auckland was in alert level 3 for more than half of last month but the city's largest real estate agency network said the lockdown had very little effect on property deals and a new all-time high price has been established.

Peter Thompson, Barfoot & Thompson managing director, said: "The latest level 3 Covid lockdown restrictions in Auckland had a negligible impact on residential property activity in August with prices hitting a new all-time high and sales numbers being their highest for an August for five years."

The average sales price was $995,543, up 1.7 per cent between July and August and 7 per cent higher than at the same time last year, he said. The price was also $2000 higher than the last all-time highest price recorded in March this year.

The median price at $911,500 was 2.4 percent higher than last month's, 9.8 percent higher than that last year, and the third highest ever median price.

August volumes were 1055, down 3.7 per cent on July but 41.4 per cent higher than for August last year, he said.

"August trading was exceptional, and from a price perspective even better than July's trading. The majority of vendors were prepared to move to the alternative sales methods we were able to offer and were largely unaffected," he said.

Buyer demand was strong and consistent, and for the second consecutive month sales numbers for this time of the year were at a level last seen at the height of the last property cycle.

"In part, we were able to sustain the excellent trading through online technology that has been fine tuned since the first lockdown such as online auctions and some easing of Government restrictions around final legal paperwork.

"Many found the move from 'in-person' to online trading to be relatively seamless, and those prepared to give it a go found they could make it work for them.

"With the easing of regulations more of the traditional selling methods have now been re-introduced. It means the market from now on will have an alternative online sales approach that will sit side by side with the more familiar way of doing business," Thompson said.

"Available listings are becoming an issue. Although new listings in August were positive at 1354, by month end we had only 3703 properties on our books, our lowest number since February this year.

"Sales were strong across all price segments and across all suburbs and districts," Thompson said.

The agency sold 60 homes for $2m-plus and 454 for $1m-plus. Sales for $1m-plus accounted for nearly half of all the agency's sales last month. It also sold 84 homes for less than $500,000.

"Lifestyle and rural property markets also experienced high trading levels with sales numbers being 77 per cent higher than what they were in August last year.

"There is a growing realisation that lifestyle and rural property represents value for money in relation to current urban residential prices creating interest among Auckland buyers for property to the north of Auckland and as far south as north Waikato. Bare land is also attracting the attention of developers," Thompson said.

Owen Vaughan, editor of NZME-owned property listing site OneRoof.co.nz, said: "Auction results were already pointing to a hot August. Sale prices are well above CV - a complete reversal of what owners were facing 12 months ago - and agents have been surprised at the level of competition at auctions. It would be unusual for a house not to get a pre-auction offer right now. Buyers who come unprepared or are reluctant to bid aggressively are going to be disappointed. "

He added: "The cry right now is for more stock. And while demand outstripping supply is good for homeowners when selling, it becomes a problem when you're looking for another house to buy."

Today's data was distributed after sales that exceeded expectations lately.

For example, a Blockhouse Bay house on a big site went last month for 73 per cent above its registered valuation, leaving the vendor in tears of joy.

Kevin He of Barfoot & Thompson said the property at 5 Matata St was valued at $1.9m but a pre-auction offer of $2.03m brought the auction forward.

Even with an offer of $2.03m in the bag, the vendor was extremely happy, He said: "That then became the vendor's reserve".

Eleven people had registered for the auction and each of them had an agent on the phone, taking their bids before auctioneer Marian Tolich, He said