May 2008 Market Update

Period	Number of Sales*	Volume of Sales
May 2008	515 Properties	$275,140,876
May 2007	1109 Properties	$618,319,318
12 months to May 2008	8348 Properties	$4,461,069,979
12 Months to May 2007	12154 Properties	$6,199,060,447

^*Excludes Northland and Commercial

Auckland property - volume down, but prices up 2.7%

The number of residential property sales in May was down by more than half on the same month last year.

The latest figures from leading Auckland real estate company Barfoot & Thompson record 515 sales for the month of May, down 54% on the 1,109 sales in May last year.

However, the average sale price increased 2.7% to $534,254 from $520,380 in April. This is the highest monthly average so far this year.

Managing Director Peter Thompson says the company’s monthly sales figures are representative of a flat, rather than falling market. “We have seen remarkably consistent market conditions since the middle of last year with the level of activity dropping off but prices holding pretty steady. It’s interesting to note that the May 08 average price is pretty close to the average for the 2007 calendar year which was $538,478.”

Mr Thompson says the company has noticed an increase in buyer enquiry and activity over the past month – even though it may not yet be translating into sales. “We’ve certainly seen increased attendances in our auction rooms, and more bidding activity. We’ve also had some recent sales where vendors had multiple offers to consider, something that has been relatively rare in previous months.”

It was a slower month for Barfoot & Thompson’s property management team with 596 fresh lettings (compared to 617 in April and 627 a year ago). The average weekly rent increased slightly to $393 (compared to $390 in April).