Buyers Return To Auckland Housing Market

April 3, 2009

Buyers Return To Auckland Housing Market With Vengeance

Home buyers have returned to the Auckland market with a vengeance, with Barfoot & Thompson reporting sales for March reaching a 20 month high.

In March Barfoot & Thompson sold a total of 924 homes, up 65.3 percent on those for February and up 46.2 percent on those for March 2008.

At the same time, the average price achieved for sales in March was $491,780 down 4.1 percent on February’s average price, and down 5.8 percent on the average achieved in March 2008.

“We sold close to 300 homes more in March than in any month in the whole of 2008, said Peter Thompson, Managing Director of Barfoot & Thompson.

“A recovery of this order is greater than any expectation, and it may well contain an element of released intention,”

“Buyers may be sensing that market prices are close to the bottom of the cycle and have made the decision to act.

“At the same time sellers are accepting that a price that is on average only 6 percent below values being achieved 12 months ago is realistic in the current market, and are ready to accept.

“It means that the market is active, and the housing market is edging further back to normality.

“Another indicator of returning confidence is the level of interest shown at auctions. In March we saw our best attendance numbers for 12 months, and we sold some 65 to 70 percent of all the homes that we put to the market.

“In February, we reported prices firmed on modest turnover, while this month turnover was extremely strong with prices coming off marginally.

“Certainly in March, the Auckland housing market emerged from its hibernation.”

Mr Thompson said factors affecting March’s sales activity were the traditional March spike, further falls in the Reserve Bank OCR, bank mortgage rates reaching new lows and knowledge that tax cuts were about to kick in.

“All have combined to give the market a remarkable lift.”

He reported that at the end of March the agency had a total 6416 listings, the lowest number in 13 months.

“While new listings in March were a healthy 1398, the number of homes sold in March has created a situation where we have the lowest number of homes on our books for 14 months.

“Currently, there is an excellent window of opportunity for those keen to sell.”

During March the agency rented out 741 houses and units, 19.1 percent more than in March 2008, and at an average rent of $392, the same average as that achieved in March last year.

“The rental market in Auckland remains positive,” said Mr Thompson.

“Demand remains strong and the average rent being achieved remains close to historical highs.”

ENDS

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