JAZIAL CROSSLEY
Auckland’s residential property market ended the year on a high, with prices rising and the number of houses sold climbing, according to one leading agency.
Barfoot Thompson reported the average December sale price was up one per cent in December from a month earlier, at $573,071, equalling a typical increase of $5500.
Managing director Peter Thompson said the property market was extremely active in the residential category for December, giving early momentum to January sales.
“In part, the strong finish to the year was assisted by there being three full weeks of trading leading up to Christmas.
“Although December was an excellent sales month, overall the Auckland market remains restrained. While buyer interest is high, they remain realistic as to the price they are prepared to pay,” Thompson said.
“At the same time the number of homes being listed for sale remained low.”
In December, the agency had 846 new listings which followed the trend of fewer listings in the immediate lead-up to Christmas.
During the course of the year the average number of new listings was 1220, the lightest number of home owners deciding to sell that Barfoot Thompson had seen in more than a decade.
Auckland home owners being hesitant to sell and holding on to their properties last year follows the general sentiment that property prices are expected to rise further, which research company QV confirmed yesterday.
Supply remains tight for Auckland real estate. Barfoot Thompson had 1282 less houses on its books in December than a year earlier, with 4583 houses listed.
Thompson said that with choice limited for potential buyers, prices are likely to increase but in modest increments with no dramatic price spike in sight.
“Further out prospects for a more active market are positive. The population of Auckland is growing and new house starts remain low, leading to the city facing a major shortage of accommodation,” Thompson said.
“As the national economy improves, and people become more confident in their personal financial situation, they will act on their housing plans, and this will lead to the market becoming more active.”
– © Fairfax NZ News
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