Auckland House Prices In January Firm, Turnover Modest

February 3, 2011
Media statement

Auckland House Prices In January Firm, Turnover Modest

Auckland house prices firmed in January, increasing to an average of $515,693, up 2.1 percent on the average price at the same time last year, but down 2.6 percent on the average price for 2010 of $529,648.

“January’s sales were consistent with the pattern for the last quarter of last year,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“While turnover was modest, price movement was in a narrow band.

In January we sold 563 properties, fairly consistent with the 583 we sold in January last year, and up 39 on December’s sales.

“It’s very much a case of the new year starting the same as the old one ended.

“Compared to January last year our average January price this year was up $10,000, while the average price is down only $14,000 on that in December, a much lower gap than is often experienced between December’s and January’s values.”

Mr Thompson said that lack of new listings was a major factor in sales volumes remaining modest.

“In January new listings were down to 896, a quarter lower than in January last year, although much better than December’s 737, which was the lowest in a month for more than a decade.

“It is a lack of sellers that is holding back market activity. What buyers are lacking is choice.”

At the end of January Barfoot & Thompson’s total listings were 5854, 9 fewer than at the end of December.

Rentals

While house sales turnover was low key, the rental market was active.

The average weekly rental achieved in January was $416, up $5 on that for December and $15 higher than 12 months’ previously.

“The lift in rents started in July last year, and January’s average has set a new benchmark,” said Mr Thompson.

“Although we let 810 properties in the month, up 3.3 percent on the number in January last year, we were still short of supply.

“A shortage of properties to let combined with landlords looking to improve their operational returns on their investments is behind the rent increases.”

ENDS

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