Auckland house prices fall in September Barfoot

Wednesday 3rd October 2012

Auckland realtor Barfoot & Thompson reported a fall in house prices in September, snapping four months of gains as the number of new listings continues to fall.

Barfoot & Thompson, which sells about one in three Auckland residential properties, said the average April sale price fell 1.1 percent last month to $585,838. Prices are up 6.9 percent compared to the same period a year earlier.

"The most significant factor still affecting the market at present remains the low number of properties for sale," said Peter Thompson, Managing Director of Barfoot & Thompson.

"Restricted choice has been an influencing factor all year, but whereas in the past four months it has contributed to rising prices, in September buyers were cautious about paying more than their assessment of market value."

The real estate agency's listing fell 10.7 percent to 1,266 in September. The number of houses sold fell 4.6 percent to 969 compared to August which recorded the highest number of sales in eight years.

"Demand for property remains high and until there is a significant increase in the number of homes built, property in Auckland will remain in tight supply," Thompson said. "Our agents have reported a significant increase in interest in sections for sale during September, and this may indicate a lift in new home building is on the horizon."

The firm sold 78 homes valued at more than $1 million. It has sold an average of 71 million dollar-plus homes in each of the past eight months, up from 47 in the same period a year earlier. It sold 456 homes for less than $500,000.

BusinessDesk.co.nz

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