August sales slow, but prices continue to hold

3 September 2008

Media Release

August sales slow, but prices continue to hold

The latest monthly results from leading Auckland real estate firm Barfoot & Thompson reveal that sales were slow during August, but prices continued to hold up.

Barfoot & Thompson sold 502 properties in August, which is low compared to a monthly average of around 900 sales per month during 2006 and 2007. However the average sale price $524,248, up 5.4% on July, and in line with what the market has been consistently delivering this year to date. (Average price Jan - Aug 2008 = $517,117)

Managing Director Peter Thompson says the most noticeable feature of the month was the low number of new listings signed up (1078 compared to an average of about 1500 per month to date this year). Clearly vendors are nervous about putting their properties on the market at this time and that is probably being compounded by the looming election.

"Every three years we see the uncertainty surrounding the pending election flow through into the property market. Vendors tend to want to hold off until post-election when the outcome is known. I would urge those who need to sell to simply get on with it."

"List now to catch the spring market and you will benefit from less competition for the buyers who are out there. We've seen an increase in buyer activity of late, both through direct enquiry and at our auctions. Don't be fooled into holding off until after the election because there will likely be increased competition at that stage."

Key points for august:

August 2008

August 2007

Total sales

502

764

Average sale price

$524,248

$552,480

New listings sign up

1078

1618

Listings available at the close of the month

6835

4744

Average weekly rent

$384

$368

August was a steady month for Barfoot & Thompson's property management division. 677 properties were let and the average weekly rental remained static at $384 per week.

ENDS

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