Reserve Bank move welcomed by Barfoot and Thompson

4 December 2008

Media Release

Reserve Bank move welcomed as Auckland's biggest real estate company releases November sales report

Barfoot & Thompson is welcoming news of a record cash rate cut, saying it will help stabilise the Auckland property market.

Barfoot & Thompson has today released its monthly sales report for November, showing that Auckland's largest real estate company experienced a slight increase in sales volume during the month, in line with seasonal expectations.

While the average sale price declined 3.7% to $500,840, Managing Director Peter Thompson says, "The average sale price has been moving around within a band between about $495,000 and $525,000 all year, so I wouldn't read too much into an individual monthly result. The average price for the year to date is $514,000."

Our auction rooms have been full during November, but buyers are very cautious and holding back on committing themselves. "Today's cash rate cut may be just the confidence booster buyers need to make a move." Mr Thompson says Barfoot & Thompson's auction clearance rate during November was about 35% under the hammer and more than 50% by the end of the week following auction day. "Buyers seem to be waiting to see what price is set in the auction room and are then willing to negotiate post- auction."

"We sincerely hope the Reserve Bank Governor's move today will flow through into retail rate cuts. It may be the impetus needed to generate fresh activity in both the urban residential and rural property markets."

Key points for November:

November 2008

November 2007

Total sales

546

881

Average sale price

$500,840

$546,364

New listings signed up

1,407

1,945

Listings available at the close of the month

7,332

6,041

Average weekly rent

$381

$377

In the property management area, Barfoot & Thompson experienced a busy November with 660 fresh lettings compared to 628 last year. The average weekly rent for November was $381, down from $385 in October.

ENDS

© Scoop Media