Auckland house prices rise 2.2% in April: Barfoot

Tuesday 5th May 2009

Auckland property prices rose in April, the third straight month which has shown signs of more life, according to to Barfoot & Thompson.

Auckland’s biggest real estate agency sold 809 houses in April, down 12% from March though up 79% from April 2008, it said in a statement. The average house price climbed 2.2% to $502,726 from March.

Sales in April “demonstrate the housing market has found strength at its present level, and with confidence returning an increasing number of people are prepared to make buy and sell decisions,” said Peter Thompson, Barfoot’s managing director.

Helping lift optimism, the central bank cut the official cash rate to a record low 2.5% last month and said rates will stay low for an extended period. Banks haven’t rushed to match the reduction by lowering mortgage rates though the outlook for a low OCR may stoke optimism mortgage borrowing costs aren’t set to rise sharply.

The real estate firm said it had 6,083 homes on its books, 19% down on the same time last year, highlighting the shortage of properties available to buyers.

People “would be surprised to learn that the biggest challenge facing the Auckland housing market was the scarcity of properties to sell,” Thompson said. Home sales would likely follow the typical seasonal pattern of declining through the winter months, he said.

Rental property demand has been strong, he said. The average rental has risen 2.6% since the start of the year to $399 a week.

Businesswire.co.nz

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