Confidence Edges Back Into Auckland House Prices

March 5, 2009
Media Release

Confidence Edges Back Into Auckland House Prices And Activity

The Auckland housing market is showing tentative signs that confidence in housing is edging back, with more buyers and sellers entering the market.

In February Barfoot & Thompson sold 559 homes, up 8.9 percent on sales in January, and the first time in four years that February sales have been higher than in the proceeding January.

Of significance, the average price was $512,536, a 3.5 percent increase on the price being achieved in February 2008, and a 2 percent increase on the average price achieved last month.

Sellers also re-entered the market, with Barfoot & Thompson listing 1470 new homes, up 50.8 percent on those listed in January. While down 28.3 percent on those listed for sale in the same month last year, February 2008’s listings were the highest in any month for more than two years.

“On all three key indicators of houses sold, average price and number of new listings, February was positive and encouraging,” said Managing Director Peter Thompson.

“The average price achieved of $512,536 in February is the highest average price ever achieved in a February, the highest average achieved in the past four months, and the first time in 13 months that the average price has been higher than its comparative month in the previous year.

“Buyers and sellers are cautiously re-entering the market, and there is cause to have some optimism that the housing market is settling.

“While sales volumes remain modest to those achieved in the past decade, the encouraging news from a home owner’s perspective is that values are holding, and in February at least have edged up.

“The combination of lower interest rates, awareness of the low number of residential building permits being granted, and the general growth of the Auckland region are all contributing factors to this modest turn around.”

More than half of all the homes sold in February (53.7 percent) sold above $500,000, while 63 homes sold above $750,000 (46 in January) and 30 homes sold above $1million (15).

“A rise in the number of $1million plus houses sold is traditional in February, and that trend has shown through again this year,” said Mr Thompson.

Rental demand remained strong, with 786 houses and units let during February, only five rentals lower than in January, which is traditionally the most active month, and 10.1 percent higher than in February last year.

Average rentals at $380 a week are consistent with the rents being achieved in January, and in February last year.

ENDS

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