Ak property prices stabilise at $502,636 average

4 February, 2009
Media Release

Auckland property prices stabilise at $502,636 average

Housing prices in the Auckland market for Barfoot & Thompson in January stabilised around the prices being achieved in the last quarter of 2008, with the average sale price in January being $502,636, less than 1 percent below the average for the last quarter in 2008, and less than 3 percent lower than that achieved in January 2008.

The volume of sales in January at 515 was higher than in December 2008 (461) but lower than in January 2008 (604).

Managing Director Peter Thompson said he anticipated this market sentiment would hold for the next two to three months.

“The rapid decline in home mortgage interest rates is bringing interest and a degree of confidence back to the market.

“Other indicators are that new listings at 975 are the lowest for a January we have experienced for a decade, and the overall number of listings at 6758 are the lowest on our books in 12 months.

“It indicates that many people have made the decision to hold properties rather than sell, while buying activity remains fairly constant.

“The trend in rental activity also endorses the view that owners are holding on to property. In January we let 791 houses and units, the highest number we have let in one month for the past 7 years.

“The average weekly rental at $384 has also stabilised, and is consistent with the average rents being achieved from July last year.

“This represents a positive start to the year for the housing market.

“As is traditional over the holiday period, the number of homes sold in the $750,000 and over $1 million categories are lower than the average across the year.

“Past history would suggest that sales in these categories will lift in the next quarter, so the potential for a modest uplift in the average selling price is there.”

ENDS

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