Listings shortage boosts Auckland house prices

Listings shortage boosts Auckland house prices

A shortage of good quality listings was the major contributor to the increase in average Auckland property prices during June according to real estate agency Barfoot and Thompson.

Barfoot and Thompson’s sales figures show the price of the average Auckland house increased by $15,434 to $370,837 last month. This compares with $355,403 in May.

Barfoot and Thompson Director, Peter Thompson, says the market is being shaped by two opposing forces – continuing buyer demand and a shortage of good quality listings.

“The inevitable result is an increase in prices as buyers compete for a limited range of properties.”

“A good illustration of the situation is the fact our listings have not been this low since the winter of 1996.”

Barfoot and Thompson had 4,737 properties on its books at the end of May and its sales people made a total of 1,345 sales during June, equivalent to more than 28 percent of the available stock.

The high end of the market continues to flourish with 32.6 percent of sales recorded by Barfoot and Thompson achieving prices of half a million dollars or more.

Peter Thompson says, “clearly confidence in the residential property market remains high, assisted by the Reserve Bank’s recent interest rate cut which has flowed through to retail mortgage interest rates being offered by the major lenders.”

On the rental front, average rents increased slightly during June to $331 per week compared to an average of $328 the previous month.

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