Auckland Real Estate market’s median price continuing to hold

Median prices are continuing to hold in the Auckland real estate market, as illustrated by June data provided by the Real Estate Institute of New Zealand (REINZ).

The median price in Auckland actually increased marginally by 0.5% compared to June last year from $1,150,000 to $1,156,000 in June 2022. This followed on from negative annual movement in May. Auckland also recorded a month-on-month increase of 2.8%, up from $1,125,000 in May. This comes on the back of month-on-month median price drops seen in five of the last six months.

This fits in with the national pattern, which indicated performance was marginally better than expected. The median price across New Zealand increased 4.2% annually, to $850,000 in June 2022. Month-on-month, there was a 1.2% increase in national median price. 

However, this price situation accompanies the fact that sales activity was down and days to sell were up. In Auckland, sales decreased 43.3% annually from 2,853 to 1,618, and when comparing June 2022 to the previous month of May, sales were down 10.5%. It should be noted that sales activity is expected to decrease somewhat over the winter months due to the usual annual property cycle so a portion of this drop can be attributed to seasonality.  

In Auckland the median days to sell in June increased by 12 days year-on-year to 44. This is exactly in line with the median days to sell property across the country, which is also 44 days. 

Auckland’s inventory (number of properties available for sale) increased by 67.2% annually to 10,451 properties in June 2022, showing last year’s shortage of supply is a thing of the past. 

Because there is much more property available than last year for buyers to choose from, they are taking their time to explore the options and do due diligence. Negotiations, an increase in conditional sales and financing criteria are all resulting in a longer transaction process.

Our data from across the five offices in the Ray White City Realty Group shows that properties marketed with an auction continue to drive stronger results. They have lower days on the market as compared to other methods of sale, even if the successful sale occurs in the days post-auction.

Market Reports suggest owner occupiers remain strong in the market and there appears to be early evidence of the first home buyer segment remerging. This follows 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.

For more information or advice on property matters, please contact one of our team at Ray White Parnell.