June 6, 2013

Media statement

Auckland House Prices Static For Second Consecutive Month

For the second consecutive month, Auckland house prices have remained steady.

“The average sales price in May was $644,737, up less than $2000 on the figure for April and down less than $1500 on March’s all-time record average price,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“The upward price momentum that started in October 2012 has stalled.

“While realistically priced properties still continue to sell almost as soon as they come on the market, there is resistance to going above current values.

“Buyers can see value in the prices at which properties are currently changing hands, but they are not adopting a “buy at any price” attitude.

“Rather than experiencing runaway prices, the Auckland property market has come out of the other side of a period of price rebalancing caused by five years of modest price growth.

“May’s average price is 10.7 percent ahead of the average price in May last year. While some properties sell well above their CVs, they are the exception and there are often valid reasons for the price differential.

“The median sales price in May of $570,000 confirms the same trend shown in the average sales price.

“In May the median price was $4000 above that for April and $10,000 below that for March.

“What did not change in May was the number of properties being sold, and the speed at which they were sold.

“In May we sold 1284 properties, 20.9 percent more than in April and 10.2 percent more than in May last year.

“New listings at 1315 were our lowest for four months, and down 14.2 percent on those for April.

“At the end of May we had 3034 properties on our books, our lowest number in more than a decade. At current sales levels that represents only 8 to 9 weeks of stock.

“Auckland remains a market where there are too many people chasing too few properties, and until there is an increase in the number of properties buyers will remain frustrated at the limited choice available.”

During May 144 properties sold for in excess of $1 million. A further 519 properties sold for less than $500,000.

ENDS

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