Housing “boom” reaches its ceiling?

8 September 2003
Media Release

Housing “boom” reaches its ceiling?

There’s new evidence the housing “boom” may have reached its peak with house prices levelling off in the past month according to the latest market report from Auckland real estate company Barfoot & Thompson.

The Company’s figures show the average house price was $386,130 in August, down slightly from $387,919 in July. This compares to a high of $398, 650 which was recorded in April this year.

Barfoot & Thompson Director, Peter Thompson, believes the market may now be stabilising.

“There has been a clear pattern of increases in the average price for residential homes in Auckland for many months now, but most in the industry accept this so called “boom” cannot continue forever,” he says.

“The latest figures may be the first indication that the market will settle.”

“It may be significant that the volume of sales has been reducing each month since May. Some experts believe volume is a good predictor of the direction of future price movements,” he says.

“Spring traditionally sees more vendors come on to the market and this may also play a role in settling prices as buyers have more stock to choose from.”

ENDS

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