Property

Auckland house sales fall to 20-month low

Monthly home sales in New Zealand's biggest city have fallen to their lowest level in 20 months as the lingering effects of the stalled economic recovery continue to weigh on households.

Wednesday, November 03rd 2010

Auckland house sales fell 19% to 561 in October from a month earlier, while the average price paid for a home was unchanged from $524,000 in September, according to Barfoot & Thompson, the city's biggest real estate agency.

The data shows a reversal in the recovery of home prices when compared to figures from the Real Estate Institute, which show the average home price rose to $450,000 in September from $445,000 in August.

This falls in line with the muted economic outlook from the Reserve Bank of New Zealand, which kept the official cash rate on hold at 3% in September, with consumers continuing to spend cautiously and pay off debt. Last month, QV Valuations data showed property values have been declining for much of this year and are about 5.7% below their peak in late 2007.

"This year the spring boost in housing activity has been slower to start, but in the last few weeks of the month new listings have increased significantly, and this normally precedes a lift in sales," said managing director, Peter Thompson.

New property listings rose 16% in October to 1,396, compared to the previous month, their highest level in six months. The increase brought total Auckland homes on the agency's books up to 5,861, an increase of 5.2%.

Average weekly rents in October rose by $10 to $417, a new high for average weekly rents which previously peaked at $408 in July.

"The average rent of $417 was achieved across 697 properties," Thompson said. "As this is only 20 less properties that we rented in September, it points to the market price lifting rather than the increase being due to a shortage of properties."

Most Read

Unity First Home Buyer special 4.29
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.85
China Construction Bank 4.85
ICBC 4.85
TSB Special 4.89
Kiwibank Special 4.89
ASB Bank 4.89
SBS Bank Special 4.89
Westpac Special 4.89
BNZ - Std 4.89
Nelson Building Society 4.93
ICBC 4.95
SBS Bank Special 4.95
China Construction Bank 4.95
Wairarapa Building Society 4.95
TSB Special 4.95
ANZ Special 4.95
ASB Bank 4.95
Kainga Ora 4.95
Westpac Special 4.95
AIA - Go Home Loans 4.95
SBS Bank Special 5.39
Westpac Special 5.39
ICBC 5.39
Co-operative Bank - Owner Occ 5.59
BNZ - Std 5.59
BNZ - Classic 5.59
AIA - Go Home Loans 5.59
ASB Bank 5.59
Kainga Ora 5.69
Kiwibank Special 5.79
ANZ 5.79
SBS Construction lending for FHB 3.94
AIA - Back My Build 4.44
CFML 321 Loans 4.99
Co-operative Bank - Owner Occ 5.95
Co-operative Bank - Standard 5.95
Heartland Bank - Online 5.99
Pepper Money Prime 6.29
Kiwibank - Offset 6.35
Kiwibank 6.35
TSB Special 6.39
Kainga Ora 6.44

More Stories

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.

Leaving last year's stumbling housing market behind

Friday, January 17th 2025

Leaving last year's stumbling housing market behind

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Don’t bet on house prices rising faster than incomes

Wednesday, January 15th 2025

Don’t bet on house prices rising faster than incomes

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.