Auckland market falling

The latest monthly data from Barfoot and Thompson shows that the firm sold 797 dwellings in January which is 9.2% lower than a year earlier. Total sales were in fact the weakest since January 2001, making it clear that there is a mild downward trend in turnover.

BNZ economists says that while the sales data “indicate mild weakness the price data show something more serious could be afoot.”

The average dwelling sale price fell away quite sharply from $493,000 in December to $428,000 in January.It points out a 5.7% decrease like this is serious, however it also says that there have been cases in the past where there have been big falls, but they have then turned around quickly.

B&T director Peter Thompson says that last year’s interest rate rises may be coming home to roost.

“The result was also possibly influenced by the school holiday period stretching into February coupled with two back-to-back holiday weekends.”

The Barfoot and Thompson numbers show that there has is no flood of properties being placed on the market.

On the rental front the company let 766 properties, which was a 5.5% increase from a year earlier. The average rent during the month was $348 a week, up just $1 from December and $2 from January last year.