Auckland housing market hit the doldrums in January

Tuesday, 4 February 2025

House prices in Auckland have taken a tumble, as the market got off to a slow start in the new year, Barfoot & Thompson says.

New figures from the city’s largest real estate agency show the region’s average house price dropped by 11.2%, or $133,000, to $1.05 million in January, from $1.18m in December.

The median house price fell by 5%, or $50,000, to $950, 000, from $1m.

Both average and median prices were down on the same time last year, and on the average over the previous three months.

The agency sold 700 properties in January, a 16% drop on the 833 sales in December. But January’s sales were significantly stronger than at the same time last year, up 38.9% from 504.

Barfoot & Thompson managing director Peter Thompson said it was customary for January sales prices and sales numbers to be below where they were in December.

It was a trend that had occurred over the past five years, he said.

“But it is the second year in a row that January’s sales numbers have increased January-on-January and, in the last nine years, our January sales have only exceeded 700 on two previous occasions.

“Seen within the context of monthly sales numbers over the past three years, to sell 700 homes in the holiday shortened period of January represents a solid start to the trading year.”

The highest January sales in recent years occurred at the height of the market boom in 2021, when Barfoot & Thompson’s figures showed 1086 sales.

Buyer focus was on the lower price segments of the market last month, with 56% of the month’s sales taking place in the under $1m market, Thompson said.

“This strong showing in the below $1 million market has a masking effect on the median and average prices. January is invariably a month when sales in the $2m and above price categories are light.”

But the agency saw a big increase in new listings in January, the figures showed. There were 1361 new listings, an increase of 74.5% on December and 11.5% on the same time last year.

That left the agency with 5383 properties on its books at month’s end, up 16.6% on the 4618 listings it had last January.

Realestate.co.nz released its latest data on Monday, and it also showed Auckland had a particularly high amount of properties on the market.

According to the property listings website, there were 11,465 homes available for sale in Auckland last month, the highest January level since 2012.

Realestate.co.nz chief executive Sarah Wood said it could be a window of opportunity for those looking for property in the region.

Auckland’s high level of stock followed the national trend, with the number of homes for sale nationwide up 18.9% annually to 32,412, and new listings at levels not seen in January for 10 years, the data showed.

Wood said that although it was typical to see more properties come to market in January, this year’s numbers were noteworthy.

“The country seems to take a collective holiday during January and over the past few years sellers have appeared to do the same. But this is the first time new listings have been around 9000 in the month of January since 2015.”

But she said that lots of choice, combined with relative price stability, offered certainty for buyers and sellers, and that as interest rates declined, the market might become more appealing for those on the sidelines.

Last week, ANZ economists said the underlying momentum in the market was not suggesting it was about to take off, with improving sales being offset by the large backlog of stock.