Auckland has been experiencing consistent home sales, but the prices are stalling. According to a recent data given by propertywire.com, "Auckland house sales activity was at its highest in more than 15 years during July, but price increases have stalled." Auckland home price growth looks to have been mired, even as turnover remains high.
It was 15 percent ahead of the $719,312 average price from July last year as further reported by nbr.co.nz. The firm sold 1388 homes in the month of July, which is 19 percent ahead of June. Other figures provided by nbr.co.nz show that there was 41 percent higher than July last year, marking the most sales for the month since 1999.
The mixture of high revenue and stable prices shows the buyer's confidence in the market at the existing prices. However, there is a recognition any property is fully priced. The last three months of trading also demonstrates that high sales numbers can be sustained without prices increasing as further stated in a report by propertywire.com.
Auckland's escalation of property prices, reinforced by a supply imbalance, has been a concern for the Reserve Bank as it observes the risks to the country's financial stability. However, according to a previous article by nbr.co.nz, "The central bank cut its benchmark interest rate in June and July to bolster the slowing economy." Data provided by propertywire.com shows that "there was also a strong interest in property in the under $500,000 category, with sales numbers reaching 200." In June sales of properties, went below $500,000 fell to 13.6 percent of sales too.
As seasons change and spring slowly approaches, the market activity in the next few months along with 2014 trading could be perplexing. In 2014, trading was significantly impacted by a 'wait and see' attitude that developed as it moved towards the general election as stated in a report by propertywire.com.
