April 2018 : Heading into winter the Devonport property market for houses remains active

The local Devonport property market is best described as active as we head into the winter period, a time typically thought of as a quiet period of the property year. It is interesting to what extent the perception of a quieter property market over the winter is refuted by the facts. I would recommend you have a read of a recent article I wrote on the analysis of seasonality in the property market "So... Should I wait to list in the Spring?" on my Properazzi site.

In the latest 3 months to April, 51 properties were sold across Devonport which added to a total sales of 208 for the most recent 12 month period, this represents a rise of 6% in sales as compared to this time last year.

Devonport property summary data April 2018.png

The future trend as far as sales volumes is concerned is becoming clearer. Sales have been falling for the past 18 months across the country and across the wider Auckland market, however the bottom of the sales cycle has appeared as we headed into 2018 and that is shown in the analysis of the latest sales figures from across the region which I recently published in a quarterly market commentary. Interestingly comparing Devonport sales data with the wider market shows some interesting variances . In April property sales across the Auckland region were up 2% but the North Shore district saw sales down 11%, whilst as stated Devonport sales were up 6%.

Property sales volume data should be seen as a lead indicator of the market; with the median price a following indicator, being as it is a reflection of the market demand and supply. As for median price, the 3 months to April in Devonport saw median prices rise 2% to $1,535,000, this compares to a 1% fall across the wider North Shore and a similar 0.6% fall across the Auckland region, again showing the importance of hyperlocal property data to fully appreciate the market when marketing a property for sale.

Devonport Property monthly variance in volume sales and price.png

 

Over the past 3 months the sales total of 51 properties has represented a clearance rate of 67% of the 76 new listings that have come to the market supporting an inventory at the end of April of properties, down from the 43 at the end of March.

In aggregate the property market in Devonport looks to be fairly active, however as ever underlying the total is the very different dynamics of the key segments of both house sales and unit sales.

 

HOUSE SALES

In the past 3 months ending April, sales for all sizes of houses totalled 38, adding to a 12 month total of 169 sales. This represents a rise of 23% compared to this time last year. The market continues to be active, with a strong flow of 56 new listings coming to market over the past 3 months with a clearance rate of 68%. The inventory of available listings of houses at the end of April totalled 33, the same as at the end of March.

A noticeable trend over the first few months of this year has been the metric of 'time-on-market' measuring the elapsed time from listing date to unconditional date. As the adjacent chart shows the time-on-market for Devonport houses has begun to reduce, if seen from the longer term perspective. Most noticeable is the significant spike seen in Spring 2016 through summer 2017 as the market  slowed, this was followed by a significant reversal as 2017 progressed, although current levels demonstrate that the market is far from the level of activity seen over the 2015/16 period.

The median sales price continues to edge up to $1,848,500 in April, an increase of 4% adding close to $100,000 over the past year.

Devonport houses median sale prices 5 years to April 2018.png

UNIT SALES

As I have outlined in previous reports, the local market for investment and owner-occupied units continues to be weak, with just 7 sales in the past 3 months. This represents a fall of 45% and such volumes pale into comparison to levels of 15 to 17 sales over the same period last year. New listings are at the same time weak with just 10 new properties brought to the market in the past 3 months with an available stock of just 4 at the end of last month. These metrics undoubtedly tend to lead to a weaker median sales price at which for the 3 months to April was $781,500 down 6% compared to last year.

Devonport Units - sales volumes and median price movements 5 years to April 2018.png