Spring boom for Auckland real estate market

The Auckland real estate market is enjoying a spring boom, with sales up more than 65pc from August last year, says Barfoot & Thompson. Photo / Greg Bowker

Auckland's property market has shot off in spring, with house sales up more than 65 per cent on the same month last year, says real estate firm Barfoot & Thompson.

Average prices were up slightly, rising to $520,023, a 1.5 per cent jump from August last year.

The firm, which is the largest in the Auckland area, said it sold 830 properties in August, up 6.5 per cent from the previous month.

"Keen interest has returned to the Auckland market," said Peter Thompson, company managing director.

"Buyers feel prices are attractive, they can afford the repayments, and are comfortable about their future job prospects.

"However, it's not a case of the market taking off. Rather, the mood is one of quiet confidence that the time has arrived to act.

Buyers were still being "restrained and selective" said Thompson, but were committed to completing transactions, which had lifted activity across all areas.

He said that the increase in average sales price of 4.9 per cent in August over that in July was more "a timing adjustment than related to values".

"The average price in August is below that achieved in May, and 2 per cent ahead of June, which suggests July's average was on the light side."

One factor preventing the Auckland housing market returning to a "nice balance" was the low number of properties for sale.

"At the start of September we had only 5212 properties on our books, the lowest number for 19 months.

"Given current high sales activity, we would anticipate more sellers will now enter the market."

-NZ HERALD STAFF