Home sales in Auckland fell for the second consecutive month as listings plummeted to a seven-month low, real estate agent Barfoot & Thompson says.
But prices remained stable, with the average sales price in July reaching $719,312, less than a 1 per cent increase over June's average price, the company said.
Releasing its monthly report today Barfoot & Thompson managing director Peter Thompson said a downturn was normal in winter, but the coming general election was also likely to be affecting the housing market.
After the number of listings had improved modestly in the first four months of the year, Thompson said there were only 3273 properties on the firm's books by the end of July, the lowest number for seven months.
"We normally see new listings increase during August as vendors prepare to take advantage of the increase in sales activity as spring approaches," Thompson said.
"However, with a general election in September, the potential exists that trading in August may not follow the normal pattern as the market awaits the election outcome."
Barfoot & Thompson sold 169 homes for more than $1 million in July, almost one house in every six the company sold.
"Sales of homes in this price segment are currently running 28.7 per cent ahead of where they were last year after the first seven months of the year," Thompson said.
However, large numbers of properties in Auckland's outer southern, western and northern suburbs were being sold for less than $500,000, he said.
Of the 983 total home sales by Barfoot & Thompson during July, 289 or 29.4 per cent were priced under $500,000.