Auckland house sales at record highs, prices stable

By Ben Chapman-Smith

Sellers currently hold the power in the Auckland property market. Photo / Greg Bowker
Sellers currently hold the power in the Auckland property market. Photo / Greg Bowker

High demand for homes in Auckland has seen house sales maintain record high numbers in August.

A press release today from Barfoot & Thompson, Auckland's largest real estate firm, said it sold 1016 homes in the city last month, the third time this year it had sold more than 1000 homes in a month.

"In terms of sales numbers we are certainly in a period of high activity as in the previous four years we sold 1000 homes in a month on only one other occasion (in March 2011)," said managing director Peter Thompson.

"However, this high activity is not resulting in prices escalating."

The average price in August was $592,395, which was less than a $1000 higher than the average price in July.

Over the past three months the average price has increased by less than 2 per cent.

"While prices are significantly ahead of those for the same period last year, the demand for property through the winter months meant that the traditional dip in values did not occur."

Barfoot & Thompson's listings have continued to rise. A total of 1417 new properties last month was 9.4 per cent higher than in July and 10.5 per cent higher than August last year.

"August's new listings were our highest for an August in four years, yet at month end we had only 3777 properties on our books," said Thompson.

"That's the lowest number of properties at month's end in the past 10 years."

Today's Herald QV Quarterly Property Report also underlined how heated the Auckland property market was.

The report said that low mortgage rates and strong demand had seen prices in some central city suburbs pushed above the 2007 market peak by between 15 and 24 per cent.

Thompson said there was continued demand for high end properties, with 83 properties selling last month in excess of $1 million.

Last year, an average 47 properties a month sold for more than $1 million. In the past eight months Barfoot & Thompson had sold on average 71 properties a month in that price range.

Thompson said the next three months normally represented the peak season for house sales.

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