Home Sales Golden Autumn Continues In Auckland

July 3, 2009

Home Sales Golden Autumn Continues In Auckland

The golden autumn that the Auckland housing market has been enjoying since March continued in June with Barfoot & Thompson selling 861 properties at an average price of $521,791.

This represents an increase in sales volume of 5.8 percent over May sales, and a 54.9 percent increase in sales on the corresponding month last year.
 
Prices achieved in June were down 2.3 percent on those in May, an expected decline as it is traditional for prices to edge lower as the winter weather approaches, and less than 1 percent down on those in June last year.

“The Auckland housing market has made a remarkable recovery from the challenges experienced as a result of the past 18 months of economic downturn,” said Mr Peter Thompson, Managing Director of Barfoot & Thompson.

“No-one was forecasting the speed, strength and solidity of the recovery in house sales activity, or the prices that are being achieved.

“It’s hard to dismiss the robust sales of recent months as a temporary reprieve in the ongoing decline of housing values.

“For the past six months we have sold on average 747 properties a month, which is on average a third more than the average of 561 for the same six months last year.

“At the same time values have remained firm, and for the last six months the average sale price has been $510,896, close to last year’s 12 month average price of $513,597.

“The strength of the Auckland housing market can be added to the list of ‘green shoots’ indicating that the economy in general and people’s confidence is starting to stabilise.”

Mr Thompson said that the biggest challenge facing the company was obtaining new listings, and at the end of June its total listings had fallen to 5557, the lowest level for the past 20 months.

Demand for rental property remains strong, and during June Barfoot & Thompson let 735 properties, the highest number ever in June, at an average rent of $388 week.

“For the past six months the average weekly rent has fluctuated from a high of $399 (in April) to a low of $379 (in May),” said Mr Thompson.

“Over the past six months rents have stabilised at an average of $387 a week, which is in line with the average for 2008.”
 
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