House prices buck downward trend

By ANNE GIBSON

Auckland house price data out yesterday bucked the downward trend and showed a slight recovery mirrored throughout the country.

The monthly Real Estate Institute figures showed Auckland's median sale price rose from $336,500 in August to $337,000 last month.

Nationally, the median was up from $247,000 to $250,000.

The slight recovery was in stark contrast to figures from Auckland's largest real estate firm, Barfoot & Thompson, released last week.

They showed house prices falling almost $500 a day, based on a reduction of more than $14,000 in the average sale price of Auckland homes from August to last month.

A Barfoot spokeswoman yesterday stood by the figures, saying the company used an average price, which could not be compared with the median price given by the institute.

The institute analysed sales data from many agencies throughout the country, whereas Barfoot's figure was based on its sales alone, she said.

Real Estate Institute president Howard Morley agreed, saying the Barfoot figures had exaggerated the impression of declining Auckland prices and were based on a limited number of upper-end sales by one firm.

Auckland house prices were "surviving pretty well" but the market for luxury homes had tailed off somewhat.

"Certainly some reduction in higher-end property values has occurred in what is a relatively tight market at that level, but overall, Auckland has matched the national median surprisingly well," Mr Morley said.

The number of sales in Auckland declined 7 per cent, from 2888 in August to 2682 last month.

Sales volumes fell 4.1 per cent nationally, from 8191 to 7854, according to the institute.

More cheap properties are selling - most sales were in the under-$400,000 price bracket.

Mr Morley said rising interest rates were dampening demand in the housing market.

Housing snapshot

* Northland's median unchanged at $195,000.

* Auckland, up from $336,500 to $337,000.

* Waikato/Bay of Plenty/Gisborne, up from $210,000 to $212,500.

* Taranaki, down from $161,050 to $158,500.

* Manawatu/Wanganui, up from $140,000 to $146,000.

* Hawkes Bay, down from $211,500 to $196,100.

* Wellington, up from $265,000 to $270,000.

* Nelson/Marlborough, down from $270,000 to $250,000.

* Canterbury/Westland, up from $218,750 to $223,250.

* Otago, up from $183,000 to $186,550.

* Southland, up from $126,750 to $132,000.