Auckland House Prices Remain Firm

Auckland House Prices Remain Firm In Spite Of Falling Sales

Average weekly rents reach new high

Auckland house sales volumes in October at 561 fell to their lowest level in 20 months, but the average price, at $524,004, remained right in line with September’s average price.

“While the market slowed by 18.6 percent in terms of sales compared to the previous month, prices did not fall,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Normally when there is a large decline in sales, prices often retreat.

“However, prices for the past two months have gone against that trend and have remained between 2 and 3 percent higher than August’s average price of $510,978.

“This year the spring boost in housing activity has been slower to start, but in the last few weeks of the month new listings have increased significantly, and this normally precedes a lift in sales.

“October’s average price is also only 3.8 percent lower than in October last year when the market was already on the rise in the lead up to Christmas.”

Mr Thompson said that choice had improved significantly in October with new listings at their highest for six months.

New listings at 1396 were up 16 percent on those for September, and this brought total listings at month end to 5861, up 5.2 percent on the previous month’s position.

“New listings create new interest in the market, from both those that are actively looking, and those that are thinking about their next move.

“This level of choice, the availability of bank funding at historically low interest rates, and stable prices are all criteria that lead to buyers being prepared to commit to a purchase.”

Rents

Average weekly rents in October increased by $10 to $417, setting a new high for average weekly rents – being $9 above the previous high of $408 set in July.

“At this time last year the average weekly rent was $403,” said Mr Thompson.

“The average rent of $417 was achieved across 697 properties. As this is only 20 properties less than we rented in September, it points to the market price lifting rather than the increase being due to a shortage of properties.

“Rents have risen as landlords seek to improve the operational return they receive from their investments.”

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