Auckland housing market holds steady through 2010

• New listings and average sale prices consistent with 2009
• 2010 sales volumes started strongly; second half of year down but steady
• Barfoot & Thompson’s outlook for 2011 positive but cautious

Figures released today by Barfoot & Thompson show Auckland’s housing market has run at a steady pace throughout 2010, with new listings and average sale prices for the year consistent with 2009.

“The average sale price over the course of 2010 was $529,648, an incremental increase of 1.4 percent over the 2009 average of $522,297,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Similarly, new listings per month during 2010 averaged 1314, almost identical to the 2009 average of 1319.”

Mr Thompson said the overall picture of 2010 was one of stability and quiet confidence on the part of both buyers and sellers.

“While the average number of homes sold per month over 2010, at around 665 homes, was down on the 2009 average of around 780, monthly sales volumes particularly in the second part of the year held steady.”

Traditional seasonal factors also played a considerable role in market activity in the past year.

“The first quarter of a year is typically energetic and 2010 had a particularly strong first half. This was kicked off in late January with a momentum built through robust renewal in new listings, consistent sales volumes and growth in average sale prices.”

Mr Thompson said it was a social reality that the weeks just before Christmas signalled a slower sales period, as Aucklanders turned their focus to holiday plans.

“Matching the seasonal trend, December’s new listings decreased by more than half to 737, sales volumes dropped by 21.6 percent to 524 and the average sale price took a small dip of 4.4 percent between November and December 2010*.”
Comparing December year on year, the month’s new listings were down 23.6 percent, the number of sales was down 19.1 percent and the average sales price was down 4.2 percent to $529,682.”

Barfoot & Thompson enters the New Year with 5865 properties on its books, 8.0 percent more than December 2009.

Mr Thompson said the positive activity out in the field points to another steady year ahead in 2011.

“We are anticipating a good start to 2011, with an increase in listings and sales early in the New Year.

“However, any increases to the average sales prices over the course of the year are likely to be incremental.

“We are also cautious that outside factors, including the Rugby World Cup and the Election, could have an impact on the market later in the year. For homeowners considering selling, we therefore recommend that the first half of the year is the best time to act.”

*December 2010 statistics are for the first three weeks of the month, after which the statistics were closed off for the year.

Rentals

Continued increases in the average weekly rent in 2010 culminated with an annual average of $403, up $15 or 3.9 percent on the 2009 average of $388.

The average weekly rent for the month of December 2010 held at $411, a record high set in November.

The company rented out 590 properties in December and an average of 713 per month throughout the 2010 year, on par with 2009.

Mr Thompson said the expectation was that rental activity would increase again in January and February 2011 as renters return from holidays to re-evaluate their living arrangements and as students and workers make an influx into Auckland.

ENDS

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