Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Auckland house sales jump 80% in March, Barfoot says

Auckland house sales jump 80% in March following soft February, Barfoot says

By Suze Metherell

April 4 (BusinessDesk) – Auckland residential property sales rebounded in March after a soft February, according to Barfoot & Thompson, the city’s largest realtor.

Sales rose 80 percent to 1,392 from February, although remained below the 1,430 sold in March last year, the firm said in a statement. The average sale price rose to $725,708 from $678,533 the previous month, while the median price rose to $652,000 from $620,000 in February.

The Reserve Bank introduced loan-to-value mortgage lending restrictions in October last year on concern rapidly accelerating house prices in Auckland and Christchurch may lead to an asset bubble and cause financial instability. Some 19 percent of homes sold in March were under $500,000, while 35 percent were $1 million or higher, Barfoot said.

“The lift in activity seems to have been concentrated at the lower end of the market, where the RBNZ’s LVR restrictions have been felt most acutely,” ASB Bank economist Daniel Smith said in a note. “Despite the partial rebound in activity, the restrictions are clearly still being felt.”

New listings rose 15 percent to 1,705 from the year earlier month, and were the highest level for March in six years, Barfoot said. Total listings declined 4 percent to 3,570 from the year earlier.

“If that is sustained, supply pressures may ease a little over 2014,” ASB’s Smith said. “But even in relation to the lower level of sales, total inventory remains very low. A continuing supply shortage in Auckland will maintain upwards pressure on prices.”

The central bank hiked the benchmark interest rate by a quarter point to 2.75 percent last month and ASB expects further increases this month, July and December, Smith said.

March recorded the biggest number of higher valued properties sold in a month since 2008, with 487 properties worth $1 million or more, Barfoot said.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news