House sales jumped in August - report

Carey Smith of Ray White real estate.

Real estate agent Ray White Ltd has reported its August sales were almost 50 per cent higher than for the same period last year.

Ray White NZ chief executive Carey Smith said there was a 47 per cent improvement on August, 2008, with Auckland up almost 70 per cent up on last year's volume, and a turnover of nearly $200 million.

Smith said the Northland region increased its turnover by 46 per cent and also had a positive stock increase. The lower North Island arm of his company lifted its sales by 25 per cent and also increased the listings secured by 14 per cent.

In the upper South Island, where the company had five offices, turnover August increased by 41 per cent, but Canterbury had a 20 per cent increase with a 10 per cent lift in new listings.

The lower South Island showed no lift in turnover, and only a slight increase in the number of new properties listed.

Smith said stronger results were expected for September because spring was traditionally the start of the peak sales period.

Another real estate company, Barfoot & Thompson, said last week that it sold 830 Auckland properties in August, up 6.5 per cent from July and 65.3 per cent ahead of August 2008.

The average house price was up 1.5 per cent from a year earlier to $530,023, but the company's managing director Peter Thompson said the market was not taking off.

"Rather, the mood is one of quiet confidence that the time has arrived to act," Thompson said today.

The average sales price rose 4.9 per cent in August from July but that was more a timing adjustment than related to values, he said.

And a cooperative agency, First National Group, reported higher activity than usual for the time of year in the $300,000 to $400,000 price range.

Activity at the lower-priced end of the residential market - under $250,000 - which dominated the past three months continued strongly but was less marked as activity increased across the board.

But demand for higher-priced property over $600,000 remained slow, on a par with the previous two months.

Listings shortages were reported as severe in some Auckland suburbs, Nelson and Taranaki but were easing overall. First National general manager John Stewart said record levels of inquiry on websites indicated people were planning, but the lack of listings was still making it difficult to meet buyer demand.

- NZPA