Spring no saviour for Auckland house sales

Tuesday 5th October 2010

Auckland house sales failed to blossom in September's sunnier weather, with fewer than 700 sales for the fourth straight month.

The number of sales slumped 25% to 689 in September compared to the same month a year earlier and rose 8.1% from August, according to Barfoot & Thompson, Auckland's biggest real estate firm. The average sale rose 1.7% to $523,861 from a year ago, and was up 2.5% month-on-month.

"While prices have moved on the back of the return of spring, sales remain quiet," managing director Peter Thompson said in a statement.

The property market hit the doldrums this year after returning expatriates and an inflow of new migrants stoked demand for housing amid a shortage of supply. Since then, the market has been lacklustre as Australia's economy dodged recession and encouraged kiwis to cross the Tasman, while households have focused on repaying debt.

Barfoot said it added 1,203 new listings to its books, up 11% from August, though 18% short of September last year. At the end of September, the agent had 5,572 homes on its books, 1% fewer than in August, and 6% more than a year earlier.

The firms' rentals achieved an average weekly rent of $407, up $1 from a month earlier, and $23 more than the same month a year ago. It boosted the number of rentals 2.3% to 717 properties from a year ago, but was down 1.5% month-on-month.

Businesswire.co.nz

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