Auckland property prices continue to hold
6 May 2008
property prices continue to hold, despite low
The latest sales figures from Auckland real estate leader Barfoot & Thompson indicate April was a slow month for sales, but prices are continuing to hold.
The volume of sales during April (453) was down 50% on the same month a year ago. Company records show real estate sales have not been this slow since December 2000. However, the average sale price is continuing to hold despite the slow turnover.
The average sale price for April was $520,380, down just 2.2% on this time last year and ahead of the March quarter average of $511,740.
Managing Director Peter Thompson says one of the most interesting aspects is that a growth in the proportion of sales occurring in the lower price bracket (less than $500,000) has not lowered the average price.
“Sales in the less than $500,000 price bracket increased from 42% of our total sales in March to 48% in April. Logically it could be expected that this would reduce the average price – but that wasn’t the case. This suggests two things. That new buyers entered the market encouraged by the wide range of stock available and that price discounting is nowhere near as prevalent as media reports would have us believe.”
“It’s clear that there is a lot of stock on hand with ‘available listings’ ending the month at 7,843 (76% higher than this time last year). However, this is a reflection of the slower market rather than a wave of new listings. The number of new listings coming onto the market has slowed from a high of 2,049 in February to 1,590 in April. There is no evidence of vendors being forced to sell. Again the facts are painting a different picture to that generally being represented in the media.”
It was a steady month for Barfoot & Thompson’s property management team with 617 fresh lettings (compared to 622 in March and 548 a year ago). The average weekly rent remained steady at $390 (compared to $391 in March).