House hunters out in force

Stephen Miles and daughter Saffron check out an open home in their area. Photo / Greg Bowker

A grey, wet Sunday and high prices weren't enough to deter buyers and browsers from the revitalised housing market.

In Grey Lynn, a two-bedroom apartment in a converted warehouse is up for auction. Agent Marc Collins said interest had been high for the entry-level property into a much-sought-after area.

In its first week on the market, more than 50 people had stopped for a look.

"The market is really active - if you've got a good property."

After the recession-fuelled slump in the housing market, figures released by the Real Estate Institute show the national median house price at a record $355,000.

Prices in Auckland were up on average 6.1 per cent on a year ago and homes are beginning to sell more quickly.

Reserve Bank Governor Alan Bollard last week warned against a return to the kind of debt-fuelled, housing-led boom that preceded the recession, and said he would move to counter it if necessary.

But words of caution weren't stopping people from dipping their toes in the market yesterday.

In Grey Lynn, Kim Lenart and Duncan Frazer have been house hunting on-and-off for five months.

They own one apartment which they are renting out, but are looking for somewhere to call home.

So far they are impressed with what they have seen of the converted apartment, with a CV of $420,000.

They love its large balcony and its proximity to town. "I don't want to do lawns," said Ms Lenart.

In nearby Freemans Bay, two large neighbouring family homes are soon to be auctioned.

Agent David Coombes said the buyer of a five-bedroom home at Picton St "would be someone who willing to put some energy into it".

The home, with a CV of $940,000, was ripe for renovation, he said.

In their raincoats and carrying their umbrellas, Alyssa Miles and her family stopped to check out the villa.

The family live locally and while not actively looking, Ms Miles said she was keeping an eye open for a potential new home. "It's a good comparison to what we already have."

She said they were drawn to the area because of the location and there were a lot of other families close by.

Mr Coombes said he had noticed a definite up-turn in the market. "Don't be fooled, there's good money to be made from good properties."

Next door, another large home is on the market. But this one, renovated 10 years ago, has four bedrooms and a garden studio with a CV of $1.63 million.

Agent Daryl Spense said the market was strong.

"It's back to where it was in late 2007. There's an excess of demand over supply."