House Prices Return To Values Last Seen In 2007

 
December 3, 2009

Media statement
 

House Prices Return To Values Last Seen In 2007

Average price increases to 23-month high of $550,217

Although prices are rising, market is rational and measured

The steady upward march of Auckland house prices showed no signs of abating in November, with the average price reaching a 23-month high of $550,217, an increase of 1 percent on the average price for October, and 9.9 percent ahead of the average for the same month last year.

“For the third consecutive month, the average price achieved increased, confirming that prices have consolidated around present levels,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“Auckland property has now recovered all the losses experienced over the past two years.

“The level of activity and strength of prices in the housing market is a strong signal that in Auckland at least property has returned to being seen as a sound, medium to long-term investment option.”

Mr Thompson said that the difference between current activity and during the height of the property boom in 2007 is that the market is more rational and measured.

“While low interest rates are a factor, buyers are committing on the basis of the property meeting their check lists and views about value for money.

“They are not being driven by concerns that they must act or they might miss out.”

For the second consecutive month Barfoot & Thompson listed more than 1600 new properties, which assisted in maintaining the number of properties for sale at more than 5600. This is the highest number of available listings since May.

“There is a good level of choice available at present, making it a balanced market – not favouring either buyers or sellers.”

In November Barfoot & Thompson sold 862 properties, down 1 percent of the number for the previous month and 57.8 percent higher than in November last year.

The average weekly rent achieved during November was $397, a decline of $5 a week over that for October but $16 a week higher than for November last year.

The company let 676 properties in November compared to 760 for the previous month.

Ends

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