Auckland home sales pick up with Spring
Monday 6 October 2008
The number of homes sold in Auckland rose last month, reflecting a pickup in demand with the start of Spring. The average price fell, possibly reflecting the global credit crisis, according to real estate firm Barfoot & Thompson.
By The LandlordThe firm had 559 sales in September, up from 502 in August. The average price slipped to NZ$495,873 from NZ$524,248 in the previous month, it said in a statement.
“The number of new listings coming on board generally increases at this time of year as the weather warms and vendors’ properties are looking their best,” said managing director Peter Thompson.
Barfoot & Thompson added 1,263 new properties to its listings last month, up 17% from August, though down from a gain of 1,543 in September 2007. The central bank has cut its official cash rate by 75 basis points to 7.5% since July and is forecast to cut the rate by another 50 basis points this month, economists predict.
Still, the impact on mortgage rates may be muted initially, as banks tend to fund their loan books from funds sourced overseas.
Commenting is closed
Global ratings agency Standards & Poors is the latest to join the chorus of predictions around potential house price falls in New Zealand – and they’re picking a 10% drop.
Auckland ’s long-term future is sound as well situated residential developments will always sell and demand for affordable housing remains strong, a leading non-bank property financier says.
New mortgage borrowing rose by roughly $1.6 billion in May as the property market showed signs of recovery from the Covid-19 lockdown.