Auckland property losing steam: agents

You could purchase 24 houses in the most expensive part of the country - Auckland's coastal North Shore where the average house value is $1,391,044. Photo / Michael Craig

The Auckland property market is losing its momentum, says one of the country's largest real estate agencies.

Barfoot & Thompson managing director Peter Thompson said there were record-high sales prices last month, while the number of sales fell to its lowest in five years.

The number of properties for sale, meanwhile, reached its highest in three years, culminating in a rare situation in the property market.

"It is a combination of factors that hasn't come together for many years. The last time sales numbers fell this low in an October was in 2011 when the market was still not fully recovered from the 2007 Global Financial Crisis," Thompson said.

"It is yet another sign the Auckland market is losing its forward momentum."

High-end buyers were not put off by prices, with 39.2 per cent of homes sold going for in excess of $1 million.

"This high-end activity lifted the average sales price to $943,801, an increase of 2.6 per cent on that for September, and 12.3 percent on that for October last year.

"Sales numbers in the month fell to 778, more than a quarter lower than those in September and also a quarter lower than the average for the past three months."

Greater availability of property for sale meant buyers were feeling less pressure to pay the asking price, which increased 1.8 per cent to $865,000 in October.

This compares with the average price increase for the month of 2.6 per cent.

"The new LVRs investors must meet has had a significant impact on sales in the under $500,000 price category. In spite of there being a reasonable selection of properties available only 40 homes - or 5.1 per cent of all properties - sold for under $500,000.

"With the normal spring lift in sales activity failing to arrive this year, the relationship between buyers and sellers has moved into a more balanced position."

According to QV's latest monthly House Price Index, released on Tuesday, Auckland's property values increased 13.8 per cent year-on-year - the slowest rate since March 2015.

The average value of a house in the region was $1,045,207 in October and $1,209,199 in city suburbs