Auckland Housing Taking Budget In Its Stride

Early Indications Auckland Housing Taking Budget In Its Stride

Prices and volume lift on April

Early indications are the Auckland housing market is taking May’s budget announcements in its stride, with the number of homes sold and the average price lifting on those for April and being very much in line with those anticipated before the onset of winter.

“There was no sharp or immediate reaction to May 20’s budget announcement around depreciation allowances,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“In May we sold 792 homes at an average price of $542,806.”

“The average price is right in line with the average price for April and was up 1.7 percent on that for May last year.

“The number of homes sold was up 18 percent on those for April, and down 2.7 percent on those for May last year.

“With the May budget coming two thirds of the way into the trading month, it is too early to be black and white as to what impact the budget has had on sales numbers and prices.

“April may well turn out to have been the ‘wait and see’ month.

“The numbers for May reflect a stable and balanced market, and an average price of some $542,000 before the onset of winter is a sound benchmark.

“Even the number of new listing for the month at 1369, which were up only 57 on those for April, suggests trading as normal.

“On June 1 we had 6023 properties on our books, which are down 56 on the number we had on May 1, and the lowest number we have had for three months.”

Rentals

Mr Thompson said the same stability was evident in rentals.

“In May we let 649 houses and units, which was only 19 less than in April, and the average rental was $398 a week, which was the same average rental as in April.

“We will have to wait until June’s sales figures are in before we get a real fix on the impact of the budget on property values.

“However, based on the trends that can be read into May’s figures what is evident is there has been no knee-jerk reaction to the measures introduced.

“Now that we have entered winter we normally see prices and volumes edge lower. If they do, it may be because of the normal seasonal trading pattern rather than as a reaction to the budget.”

ENDS

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