Fewer sales but good prices in September

5 September 2007

Media Release

Fewer sales but good prices in September

Leading real estate company Barfoot & Thompson reports a 15% reduction of in the volume of residential sales in Auckland during August, but the prices achieved by vendors still held up strongly.

Barfoot & Thompson sold 765 properties in August, compared to 899 in July. In recent years the company has consistently sold around an average of around 1,000 properties a month, meaning overall sales volume is down by about a third.

However, the drop in the number of sales is not impacting on the prices being paid. Barfoot & Thompson’s average sale price for August was $552,480, up 1% on the July average of $546,773.

Director Peter Thompson says, “This is the second month in a row where sales volume is down, but prices have remained steady. We have certainly noticed a drop off in activity across our 64 branches, but the anecdotal evidence that good prices are still being paid for quality housing stock is today backed up by the hard sales data. The truth is that good properties are still selling for good money and we still have the traditional spring real estate upturn to come.”

Mr Thompson notes that it appears to be the lower to middle market that has been most affected to date. “There is obvious strength in the top end of the market. One in five sales made by Barfoot & Thompson during August was for $1,000,000 or more while almost one in three was for $750,000 or more. It would appear to be the $500,000 and below price point that has slowed.”

Barfoot & Thompson’s property management division performed well during August, achieving a record month for total rental commissions. 660 houses and units were let during the month for an average weekly rental of $368. This is up from $367pw in July, but still well short of the $375pw record set in May.

ENDS

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