August 09 Market Update

Residential Settled Sales August 2009

*Excludes Northland and Commercial  Click here for full list of sales

Traditional Spring Bounce Lifts Auckland Housing Market - Activity high, prices edge up

Activity in the Auckland housing market increased significantly during August with a traditional spring ‘bounce’, and the average house price increased by 1.5 percent to $532,023 over last year’s average for August.

“We sold 830 properties in August, which is a 6.5 percent increase on July’s sales numbers and a 65.3 percent increase on August last year,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Keen interest has returned to the Auckland market.

“Buyers feel prices are attractive, they can afford the repayments, and are comfortable about their future job prospects.
 
“However, it’s not a case of the market taking off. Rather, the mood is one of quiet confidence that the time has arrived to act.

“Buyers remain restrained and selective, but are committed to completing transactions, and this is lifting market activity across all geographical areas.”

Mr Thompson said that the increase in average sales price of 4.9 percent in August over that in July was more “a timing adjustment than related to values”.

“The average price in August is below that achieved in May, and 2 percent ahead of June, which suggests July’s average was on the light side.”

Mr Thompson said that the strong activity in August was assisted by Barfoot & Thompson listing 1309 properties, the second consecutive month its new listings have been above the 1300 mark.

“A factor preventing the Auckland housing market returning to a nice balance is the low number of properties for sale.

“At the start of September we had only 5212 properties on our books, the lowest number for 19 months.

“Given current high sales activity, we would anticipate more sellers will now enter the market.”