House Prices Push Through To 22-Month High

November 4, 2009
Media Statement

House Prices Push Through To 22-Month High

Confidence Returns To The Auckland Housing Market

Confidence has returned to the Auckland housing market and the average sales price across the region in October was $544,745, a 22-month high.

“The prices achieved in October were exceptional, and we have not seen average prices comparable to this since December 2007,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“In October the whole market lifted to a higher level, and the average price increased on those achieved in September by 5.8 percent.

“Compared to the same month last year they are 4.8 percent ahead.

“Sellers returned to the market in strength, and we listed 1676 new properties in October, the highest number in a month since March 2008.

“At the same time buyers’ responded to attractive interest rates and greater choice, and we sold 871 properties, an increase of 73 percent on the number sold in the same month last year.

“It is a sure sign Aucklanders have shrugged off their concerns about the future, and are moving forward with their plans around home ownership.”

Rental activity was also strong, with the average weekly rent achieved by Barfoot & Thompson’s property management division being $403.

“This is the first time average weekly rents have climbed above the $400 mark, and the increase in average weekly rents over those for the previous month was $19, or 4.9 percent.

“At the same time last year the average weekly rent was $385.

“This is the highest increase in rents in a month we have witnessed in 7 years.

“It was also achieved in a market where there was a good deal of choice, and during the month we let 760 houses or units, up 8.4 percent on the number the month previously.

“While we would anticipate that weekly rents might ease as we move closer to the Christmas and holiday break, it could well be an early sign that rentals are also about to move to a higher level.”

ENDS

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