Auckland Housing Market Marks Time In June

Auckland Housing Market Marks Time In June

Sales down, prices follow seasonal trend and edge lower

Average weekly rent increases

A combination of the traditional winter slow down and post budget uncertainty caused the Auckland housing market to mark time in June.

“Sales at 665 were down 16 percent on those for May, but the average price at $523,058 eased back only 3.6 percent, a trend that has occurred in June for the past five years,” said Wendy Alexander, Chief Executive Officer, Barfoot & Thompson.

“While the budget has definitely contributed to lower sales, its impact on prices has not been great, and there is no indication that investors are getting out of the market.

“Factors that confirm this are the average price in June is the same as that for June last year, while the number of new listings, at 1194 for the month, is down 12.8 percent on those for May and the same as for June last year.

“If investors were getting out, listings would be up and prices would be under more pressure than they are.

“It adds up to a market that is uncertain, and many people are putting off making decisions.

“Since the start of the year, the average house price has moved no more than $40,000 in a band between $505,000 and $545,000, and it is unlikely there will be any significant changes in the ‘steady as she goes’ state of the market before the return of the warmer weather in September.”

At the start of July, Barfoot & Thompson had 5794 properties on its books, 229 fewer than on June 1 and 237 more than on July 1, 2009.

Rents

While average house prices have edged lower, the average weekly rent has increased by $5 on those for May to $403, the highest weekly average for eight months.

“Rents are edging up at a time of the year when they tend to trend downwards,” said Alexander.

“Landlords are anticipating they will be facing higher costs, and they are looking to recover some of those increases through higher rents.

“At this time last year the average weekly rent was $15 lower.”

During June Barfoot & Thompson rented out 690 properties, up 6.3 percent on those for May.

ENDS

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