Median home prices in Auckland have fallen nearly one-fifth since their peak in November, according to data from the Real Estate Institute.
Median home prices in the city fell from about $ 1.54 million in November to $ 1.25 million in February, according to data from the Institute (Reinz).
The decline was also pointed out by real estate data firm CoreLogic, which recorded a median selling price decline of 19% between the December quarter and the beginning of the year.
Nick Goodall, Head of Research at CoreLogic, said the rise in apartments and apartment sales and the decline in sales of self-contained homes, probably due to homeowners’ expected prices being too high. He said that was also a factor. ..
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According to Gudall, apartments (including townhouses and terraced houses) and apartments (units in larger complexes) are traditionally cheaper and owners’ expectations are more in line. Down market..
The owners of traditional homes that managed to sell were probably the ones who accepted the lower prices, Goodall said.
He said these probably include ambitious sellers who have already bought another property and investors who accept lower prices than they were three months ago, given that capital gains are still high. rice field.
Gdor said first homebuyers should be encouraged by lowering the median selling price.
“It shows adjustments in the market where lower prices have been achieved,” he said.
Mr. Gudall said that Auckland has traditionally led price movements and later expanded nationwide. But that didn’t mean that this time.
“This time it shows vulnerability earlier than some regions due to the fact that the average is high and the current slowdown is caused by the tightening of credit terms that affect the amount people can borrow. It may be, “he said.
Comparison of Auckland area
According to Reinz, the median of the entire Auckland region has fallen by about 8% since its peak in November, but the rate of decline varies from region to region.
Other notable declines include Papakura, whose median fell 18%, and the North Shore, which peaked at the end of last year and fell 12%.
The exception to this trend is the Division of Franklin, where prices have risen 4% since November to reach $ 1,015,000 in February. However, this number was $ 35,000 below the median in January.
Median selling prices for Papakura were down about 6% from the fourth quarter of 2021, Manukau was down 13%, and North Shore was down 10%, according to CoreLogic data.
Reinz creates another indicator for tracking market movements called the Home Price Index. It takes into account the attributes of the home for sale, such as land area, floor area, number of bedrooms, etc.
The index, though much more modest, also showed price declines. In the three months to March, the Auckland region decreased by 5.5%, but increased by 10.3% year-on-year.
Auckland was down 6.4% in the three months to March, Manukau was down 6.9% and the North Shore was down 4.6%. Franklin continued to rise 0.7% in the three months to March, and Rodney also rose 0.6%.
CoreLogic also maintained a median property value that evaluates all properties using an automated model.
“According to our automated valuation model, the median value for all residential properties in Auckland was $ 1.63 million at the end of February 2021 and $ 1.64 million at the end of November 2021. That’s a 0.8% drop. “He said.
“In the case of super-city, the median of all properties fell from $ 1.27 million to $ 1.26 million over the same period, down 1.3%.”
How the types of properties for sale have changed
So far this year, 45% of sales have been homes, 26% have been apartments and 27% have been apartments.
The remaining 1 percent was social housing.
When compared to the long-term average, Goodall said these numbers represent a fundamental change in the types of builds sold.
The three-year average for each of these property types is 57% homes, 18% apartments and 23% apartments.
In the last quarter of 2021, 55% were homes, 21% were apartments and 20% were apartments.
More apartments and apartments in Auckland may have been more than before, according to Gudall.
Data from Reinz’s monthly real estate report in February also show that sales are slowing rapidly.
Sales in the Auckland region fell 44% in February compared to November, despite the large number of properties on the market.
Realestate.co.nz figures show that there were 23,270 properties on the market in February, up 47% year-on-year, Trade Me data shows. Real estate for sale Increased by more than 20% year-on-yearFor the first time reached the pre-Covid level.
Despite falling prices and activity, prices are still well above where they were sitting before the boom triggered by the Covid-19 bailout began.