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

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news