AK Housing Confidence, But Prices Not Overheating

October 5, 2009
Media statement

Auckland Housing Confidence Evident, But Prices Not Overheating

Traditional Spring Bounce Returns

The returning confidence being shown in the economy flowed through into the Auckland housing market in September, with Barfoot & Thompson selling 917 homes in the month, its second highest for any month in 2009, and the average price, at $514,890, was an increase of 3.8 percent on prices for the same month last year.

“This was the third consecutive month our average price for the month exceeded that for the corresponding average in 2008, and I take that as a good indicator that house prices on a year on year basis have stopped falling, said Peter Thompson, Managing Director of Barfoot & Thompson.

“At the same time, prices are not overheating.

“In September the average price was down 3.2 percent on that for the previous month, showing that monthly variations are still occurring.

“There was a better balance and controlled feel to the market in September than has been the case for some time.

“This was assisted by the number of new listings in the month, which at 1466 were up 12 percent on August’s new listings, but there was also a feel that the market was settling down.

“The views of buyers and sellers as to what is a fair price are coming closer together.”

Mr Thompson said the number of homes sold in the month showed that market activity was returning to normal, and a contributor to the rise in sales was the traditional spring ‘bounce’.

“September was the second time in 2009 that we have sold more than 900 homes in a month.

“It shows that Aucklanders are prepared to put aside their concerns about the economy over the medium term, and are starting to act on their plans around their future.”

During the month Barfoot & Thompson let 701 houses and units at an average weekly rent of $384.

“As is often the case at this time of the year, rents are edging down, and are $15 a week down on their high point in April,” said Mr Thompson.

ENDS

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