Auckland property market back from the dead?

By | March 5, 2009

5 March 2009

Source: NZ Herald

It may not be the dawn itself, but latest house sales numbers from Auckland’s largest real estate company might just show the first glimmer of light in a gloomy property market.

The number of homes sold by the company rose nearly 9 per cent from the month before to 559. Barfoot says it is the first time in four years it has sold more homes in February than the proceeding January.

Average prices rose by 3.5 per cent from February last year, at $512,536. These prices were also up slightly – 2 per cent on January.

Concern about the number of listings in the real estate market may be starting to ease, with 1470 new listings for Barfoot in February. This is up 50 per cent from January, well down when compared to the same month last year.

Company managing director Peter Thompson said the three key indicators – number sold, average price and the number of new listings for February were “positive and encouraging.”

“The average price achieved of $512,536 in February is the highest average price ever achieved in a February, the highest average achieved in the past four months, and the first time in 13 months that the average price has been higher than its comparative month in the previous year.

“Buyers and sellers are cautiously re-entering the market, and there is cause to have some optimism that the housing market is settling.

“The combination of lower interest rates, awareness of the low number of residential building permits being granted, and the general growth of the Auckland region are all contributing factors to this modest turn around,” said Thompson