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Auckland house prices slump in June

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  • Auckland house prices slump in June

    Auckland house prices slump in June

    10:45 AM Monday Jul 5, 2010
    Photo / Glenn Jeffrey

    Auckland house sales slumped last month as winter malaise set in among buyers amid declining demand in the property market.
    The number of sales sank 16 per cent to 665 in June from a month earlier, and was down 23 per cent from a year ago, according to Barfoot & Thompson, Auckland's biggest real estate firm.
    The average sale price dropped 3.6 per cent to $523,058 month-on-month, and was up an annual 0.2 per cent.
    "Housing market activity is likely to remain very weak throughout the remainder of 2010, reflecting waning demand," said Jane Turner, economist at ASB Bank.
    "Given the weakening fundamentals we expect to see house prices decline slightly this year, however, the low level of supply, as indicated by weak consent issuance and the low level of new listings, will limit the degree of downside pressure on house prices."
    House prices are expected to fall at an annual pace of 0.2 per cent for the next two years with several years of subdued sales volumes, according to Westpac Bank.
    That comes after the government clamped down on tax benefits for property investors in its May budget, while the Reserve Bank embarked on tightening monetary policy.
    Barfoot chief executive Wendy Alexander said the Budget contributed to lower sales, but didn't have much impact on prices.
    The firm added 1,194 new listings in June, down 13 per cent from May, and had 5,794 properties on its books at the start of July. At the start of June, it had 6,023 properties on its books, and on July 1, 2009, it had 5,597. ASB's Turner said new listings had been "very subdued" for some time.
    Barfoot's average weekly rent rose to $403 last month from $398 in May and $388 a year earlier. It rented out 690 properties in June, up from 649 a month earlier, though down from its 735 in 2009.
    Turner said anecdotally, landlords have been lifting rents in response to the budget's tax changes, though "the ability to increase rents may be limited by prospective tenants' ability to pay given the weakness in wage growth over the past year."
    Auckland house sales slumped 16pc in June, with the average sale price falling 3.6pc from a year ago, says real estate firm Barfoot & Thompson.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    "The average sale price dropped 3.6 per cent to $523,058 month-on-month, and was up an annual 0.2 per cent."
    That's not a price slump, it's a volume slump.


    • #3
      you've "corrected" all of us

      then the minister of finance

      then the pm

      then poor old bernie

      now you are correcting the herald

      what could this mean?
      have you defeated them?
      your demons


      • #4
        Whether or not I have corrected anyone, depends on your interpretation of who is right - so I'll take that as a compliment, thanks. Just remember, these people say a lot of things, they cannot be right all the time.