Auckland property prices rise in July, sales up 24pc

Auckland property prices fell from June to July, but were up compared to July last year, says Barfoot & Thompson. Photo / Brett Phibbs.

Auckland property prices rose in July, but local real estate firm Barfoot & Thompson says the hot action was in the number of sales - up nearly 24 per cent on the same month last year.

Barfoot & Thompson is the biggest real estate firm in Auckland, and says the market last month was "active, solid and with a sense of certainty" with more sellers entering the market.

The average sale price rose $10,000 on July last year at $507,384 while 23.8 per cent more sales were made than in the same month last year with 779 properties being sold.

"The market is showing no signs of giving up the gains made over the prices and sales volumes recorded last year," said company managing director Peter Thompson.

The average price was down 2.8 per cent on June, with sales volume down from that month by 9.5pc.

Thompson put this drop down to an expected seasonal fall, "as the market often marks time for a period before the start of spring activity."

ASB economist Jane Turner described the figures as "reasonably steady."

This trend was consistent with mortgage approvals over July and suggested that nationwide house sales figures from the Real Estate Institute would also remain firm.

"The housing market continues to hold onto its recent gains, although the level of turnover remains below average levels," said Turner.

"Despite the pick up in new listings, the total number of available listings continues to decline, and starting to settle around average levels restoring the balance between supply and demand."

"With the pick up in demand and the continued decline in excess supply, we anticipate that house prices are now likely to be stabilising," said Turner.

Turner said the Quotable Value house price index, due for release this weekend was is a better gauge on house prices and "likely to show a smaller decline in house prices relative to year-ago levels."

Barfoot & Thompson's Peter Thompson said the July activity "can be seen as a month which emphasised that Auckland housing has found a new base.

"People are feeling comfortable with current prices and trends.

Thompson said more sellers were now entering the Auckland property market, with 1386 properties listed for sale in July - an increase of 16.6 per cent on June, and an 18.4 per cent increase on July last year.


-NZ HERALD STAFF