Sales booming but prices steady: Barfoot and Thompson

Auckland house prices sold in record numbers in August but prices remain steady, Barfoot and Thompson says.

Wednesday, September 5th 2012, 12:00AM

by The Landlord

Managing director Peter Thompson said: “In August we sold 1016 homes, the third time this year that we have sold more than 1000 homes in a month. In terms of sales numbers we are certainly in a period of high activity as in the previous four years we sold 1000 homes in a month on only one other occasion (in March 2011).”

But he said the activity was not pushing up prices.

“In August the average price was $592,395, less than $1000 higher than the average price in July, and in the last three months the average price has increased by less than 2%.
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“While prices are significantly ahead of those for the same period last year, the demand for property through the winter months meant that the traditional dip in values did not occur.”

During August, Barfoot and Thompson listed 1417 new properties, up 9.4% on listings in July and 10.5% higher than in August last year.

“August’s new listings were our highest for an August in four years, yet at month end we had only 3777 properties on our books. That’s the lowest number of properties at month’s end in the past 10 years.”

He said there was demand for high-end properties and 83 homes worth more than $1 million sold in August.

“In the past 8 months we have now sold on average 71 properties a month for more than a million dollars compared to 47 a month for the same period last year. In August we also sold as many homes under $500,000 (503) as we did over that amount (513).”

He said the showed growing confidence across all price ranges of the market. He expected that to continue throughout the rest of the year.

“The next three months normally represent the peak season in the year for house sales, and all the indications are that the current level of activity will be maintained through till Christmas.”

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