House prices ignore predictions to rocket forward

Expectations that Auckland's roller-coaster housing market might be trending down were dashed yesterday when sales figures at the city's largest agency rocketed ahead, establishing an 82-year record.

And the country's largest realtor, Harcourts, set a 117-year record.

Economists have been predicting that the market was set to turn. BNZ chief economist Tony Alexander last month warned first-time home-buyers to stay out of the market. Westpac said it too was predicting a gradual price drop.

But Barfoot & Thompson's average sales figure shot up from $428,966 in February to $468,151 last month, partly due to a large number of luxury house sales.

Director Peter Thompson said three big deals for between $3 million and $10 million and 11 sales in the $2 million range pushed averages up.

"Most of the large sales were in Auckland's eastern suburbs," he said. "In fact, our Remuera branch had a particularly successful month, selling 47 properties worth a total of almost $60 million."

The average sale price fell from $454,345 in January to $428,966 in February but the latest numbers showed the opposite trend.

The country's largest agency has also set a record.

Harcourts, which has 170 offices, said it sold $1.013 billion worth of properties last month, up on the $940 million sold in February.

Quotable Value statistics issued yesterday showed average residential properties grew in value by about 12 per cent in the year to March, 1.4 per cent down on the annual growth reported in February.

Real Estate Institute figures for February, released on March 17, showed house sales recovering and prices hitting a record.

National house sales jumped 45 per cent from January to 10,231 - the highest recorded for a February month - although sales were only 3 per cent above the same month a year ago.

Deal breakers

* Barfoots set a new sale-price record, the highest in its 82 years in business.

* Harcourts cracked the $1 billon sales figure last month for the first time.

* Sales of properties for more than $1 million made up 15 per cent of Barfoots' business last month.

* Sales of lower to mid-range priced houses in Papakura, Mt Roskill, Henderson, Manurewa, Mt Albert and Te Atatu were also strong.

* Barfoots let 683 houses last month for an average weekly rent of $346.