Mar 14, 2011
There is no doubt that the property market in Auckland does not appear to be as buoyant as it has been over the past couple of years. However looking at historical evidence it would appear that the market may be as buoyant and may be following similar trends to previous years.
In 2009 there were 2,190 sales in March at an average price of $435,000.00 which took a median 38 days to sell. In February 2009 there were 1,590 sales at $421,500.00. There were again in excess of 2000 sales in April 2009 with the average price of each sale being maintained at $435,000.00.
In March 2010 there were 2,187 sales at an average price of $475,000.00 taking an average of 34 days to sell. In February 2010 there were 1,578 sales at an average price of $453,500.00. Sale numbers dropped slightly to 1,750 in April 2010 but the time to sell also dropped to 35 days. Again, as with 2009, the average price remained by and large at the March level.
During January 2011 there were 1,428 sales at an average price of $455,000.00 taking an average of 33 days to sell.
Looking at the above data there are some good signs. The average selling time for 2011 is down to 33 days which is good news for Vendors who are keen to sell. If the historical trends are anything to go by we can expect a rise in property sale values this month. Judging on the March rises in the last couple of years that increase could be as much as 5%. We can also expect the level of sales activity to be maintained both as to the number of sales and their average value through to May.
Looking at the anecdotal evidence with which we have been presented over the first couple of months of 2011 there is no doubt that if a property is priced correctly and is well presented it will sell. There are buyers out there. The real problem is that there are also Vendors out there who are unrealistic about the value of their properties who are not willing to sell in a market that has in the past year lost roughly 5% of its value. The good news however is that if the market follows the trends of the last two years we can expect as much as 5% gain this month.
LOOK OUT FOR OUR REPORT NEXT MONTH TO SEE WHAT THE MARKET HAS DONE AND WHETHER OR NOT IT HAS FOLLOWED THE TRENDS OF THE LAST COUPLE OF YEARS.