KEY POINTS:
A leading real estate firm is warning sellers of Auckland property to price "realistically" if they want to sell within a reasonable time as buyers now have plenty of choice.
Barfoot & Thompson released its monthly Auckland market report today, saying the average sale price on properties it sold was $546,364 in November, barely changed from $546,679 in October.
The company sold 881 properties last month, up from 675 in September and 796 in October.
The figures would seem to support a growing view that the country's house price boom is finished.
Leaving official interest rates unchanged as expected at 8.25 per cent today, Reserve Bank Governor Alan Bollard welcomed the slowdown in house price inflation.
Recent indicators including a "precipitous" drop in house sales in the past six months "portend a sharp slowing in house price inflation over the remainder of this year", Dr Bollard said.
Westpac bank this week said the house price boom had been killed off by high interest rates.
Annual house price inflation was on target to hit zero before the middle of 2008, Westpac said.
Releasing the November figures, Barfoot & Thompson director Peter Thompson said the company ended the month with just over 6000 property listings on its books, the highest monthly stock level since January 2002.
"We signed up more than 1900 new listings during November, which is in line with expectations for this time of the year, although slightly ahead of the same month last year," he said.
"With our stock levels at a five year high, vendors need to be aware that buyers have plenty to choose from in the current market and properties need to be priced realistically to sell within a reasonable timeframe.
"Overall the picture is of a very settled market delivering stable prices and I believe that will continue well into 2008."
Of the properties sold by the company last month, 57 per cent were for $500,000 or more, while 70 sales topped $1 million, Barfoot & Thompson said.
In property management, where the company had more then 7000 houses and units under management, average weekly rents dropped back from a 2007 high of $388 in October to $377 in November. During the month 628 fresh lettings were signed up.
- NZPA
