Auckland housing market ticking over

Auckland housing market ticking over

Volumes edge lower but average prices hold

The Auckland housing market has found its winter ‘ticking over’ point with average prices holding firm and sales volume edging lower.

“For the past few months turnover and average prices have moved in a tight band,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Properties are continuing to sell, particularly if they are priced to meet the market, while there is a steady stream of new listings giving buyers a good level of choice.

“It’s a typical situation that can develop in mid winter, especially during periods when economic activity is quiet.

“Sales in July at 644 were down 21 properties on those for June, and down 17.3 percent for July last year.

“At the same time average prices held up well with July’s average price edging up 2.2 percent to $534,389 on those for June. This was also 5.3 percent higher than in July last year.

“We are attributing the increase in average sales price to a higher than usual number of homes selling at more than $750,000 in July. The percentage increase was modest, but enough to push the average price higher.

“New listings for the month at 1267 were up 6.1 percent on those for June but were fairly typical for this time of year.

“At the beginning of August we had 5759 properties on our books, right in line with those at the start of July.

“Until winter is behind us, we anticipate market conditions will remain the same as at present.”

Rental Activity

While the housing market remained stable, in July, the average weekly rental reached a new, all-time high, increasing by $5 to $408.

The average rent for July is now $20 a week higher than the average for July last year, which at $388 was the average weekly rent throughout 2009 and 2008.

“Average rents have definitely increased since the start of the year,” said Thompson.

“Landlords are facing higher operating costs and this is leading to rents going up.”

July is always an active month for new rentals, and the company rented out 775 properties this July, up 12.3 percent on June’s number, but in line with the rentals achieved in July last year.

ENDS

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