House prices ease in Auckland
Fri, 08 Feb 2008 05:08p.m.
New sales figures from one of the country’s biggest real estate companies suggest the property market has stalled, and gone backwards.
Barfoot and Thompson's January statistics show the average sale price for a house in Auckland fell seven and a half percent, between December and January.
It also found the number of houses being sold fell even more sharply.
Home owners in the country's largest city saw the value of their properties fall by an average of almost $1400 a day in the first month of 2008.
A fall in prices is normal for January, but Barfoot and Thompson say this drop is more than just a normal seasonal fluctuation.
“I think we've got to be realistic. We've had the highs of the last couple of years but certainly we've got to be realistic for 2008,” says Peter Thompson from Barfoot and Thompson’s.
But it is the 40 percent fall in the number of houses being sold, from 1000 in January 2007 to just 600 last month - that suggests the property boom is well and truly over.
“I'm not predicting that we're going to see increases in prices this year but similarly don't think we'll see prices fall too much,” Thompson adds.
“The drop in sales volumes is significant it's now the lowest number of properties sold for the last six years or so which is about 40 percent lower turnover. That means there is going to be some desperate sellers out there,” says Ollie Newland, property investor.
Ange Fuller is not desperate to sell her house, but she has noticed a definite change since selling her last house in June.
Fuller started out selling privately, but has now opted to use an agent.
"We've got a figure in our head basically that we think this house is worth and that will enable us to go forward with the lifestyle we want to go forward with,” says Ange Fuller, a house seller.
But it is an approach that some say might have had its day.
“They should also become realistic with the price, I think a lot of people are over priced they are trying to get yesterday's price tomorrow rather than get tomorrow's price today,” adds Newland.
While it is too early to make any firm predictions about the direction of the property market It is clear that if today's trend is repeated in sales figures in the coming months - a property market recession could well be on the cards.
Fri, 08 Feb 2008 05:08p.m.
New sales figures from one of the country’s biggest real estate companies suggest the property market has stalled, and gone backwards.
Barfoot and Thompson's January statistics show the average sale price for a house in Auckland fell seven and a half percent, between December and January.
It also found the number of houses being sold fell even more sharply.
Home owners in the country's largest city saw the value of their properties fall by an average of almost $1400 a day in the first month of 2008.
A fall in prices is normal for January, but Barfoot and Thompson say this drop is more than just a normal seasonal fluctuation.
“I think we've got to be realistic. We've had the highs of the last couple of years but certainly we've got to be realistic for 2008,” says Peter Thompson from Barfoot and Thompson’s.
But it is the 40 percent fall in the number of houses being sold, from 1000 in January 2007 to just 600 last month - that suggests the property boom is well and truly over.
“I'm not predicting that we're going to see increases in prices this year but similarly don't think we'll see prices fall too much,” Thompson adds.
“The drop in sales volumes is significant it's now the lowest number of properties sold for the last six years or so which is about 40 percent lower turnover. That means there is going to be some desperate sellers out there,” says Ollie Newland, property investor.
Ange Fuller is not desperate to sell her house, but she has noticed a definite change since selling her last house in June.
Fuller started out selling privately, but has now opted to use an agent.
"We've got a figure in our head basically that we think this house is worth and that will enable us to go forward with the lifestyle we want to go forward with,” says Ange Fuller, a house seller.
But it is an approach that some say might have had its day.
“They should also become realistic with the price, I think a lot of people are over priced they are trying to get yesterday's price tomorrow rather than get tomorrow's price today,” adds Newland.
While it is too early to make any firm predictions about the direction of the property market It is clear that if today's trend is repeated in sales figures in the coming months - a property market recession could well be on the cards.
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