Auckland house sales, prices take a tumble

Photo / Greg Bowker

Barfoot & Thompson recorded a fall in Auckland house sales and prices in December, while describing the market in 2010 as "steady".

Last month the company's sales were down 19.1 percent from December 2009 to 524, with the average sales price down 4.2 percent to $529,682.

Barfoot & Thompson managing director Peter Thompson said it was a social reality that the weeks just before Christmas signalled a slower sales period, as Aucklanders turned their focus to holiday plans.

Overall Auckland's housing market ran at a steady pace throughout 2010 with new listings and average sale prices for the year consistent with 2009.

For all of 2010 the average sale price was $529,648, up 1.4 per cent from the 2009 average, while the 665 average monthly house sales last year was down from 780 in 2009.

Goldman Sachs economist Philip Borkin said stabilisation in the market during 2010 was encouraging, however near-term modest house price falls still seemed likely.

"This should ensure that the pace of household deleveraging is maintained at a similar rate to that experienced over 2010 and contain spending growth," he said.

Barfoot & Thompson entered the New Year with 5865 properties on its books, 8.0 per cent more than December 2009, Thompson said.

The overall picture for 2010 was one of "stability and quiet confidence", he said.

Seasonal factors had played a considerable role in market activity in the past year, Thompson said.

"The first quarter of a year is typically energetic and 2010 had a particularly strong first half. This was kicked off in late January with a momentum built through robust renewal in new listings, consistent sales volumes and growth in average sale prices."

Thompson said the company was anticipating a good start to 2011.

However, any increases to the average sales price over the course of the year were likely to be incremental, he said.

Average weekly rent held in December at $411, the record high set in November.

For 2010 as a whole, the average weekly rent was $403, up $15 or 3.9 per cent on the 2009 average of $388.

- NZ HERALD ONLINE / NZPA