May 2009 Market Update
||Number of Sales*
||Volume of Sales
|May 2009||814 Properties||$434,602,520|
|May 2008||515 Properties||$275,140,876|
|12 Months to May 2009||7377 Properties||$3,767,613,704|
|12 Months to May 2008||8348 Properties||$4,461,069,979|
*Excludes Northland and Commercial
Autumn Surge In Auckland Home Volumes & Prices Produces ‘Best Month’s Trading’ in Two Years
The surge in Auckland housing demand that emerged at the start of autumn showed no signs of easing in May, with Barfoot & Thompson seeing its average sales price increasing by 6.2 percent in the month to $533,909, the highest average price for 12 months.
“There was real depth and strength to the market in May, with sales volume at 814 being one percent higher than in April and 58.1 percent higher than May last year, said Peter Thompson, Managing Director of Barfoot & Thompson.
“This was our best month’s trading for more than two years in terms of achieving both high volume and high prices.
“May’s average sales price was equal to that achieved in May last year, and you have to go back some 18 months to better the prices achieved last month.
“It was also the third consecutive month when we sold more than 800 homes, a target we never achieved once last year.
“There was a noticeable increase in demand for homes in the more established suburbs and we sold 57 homes in the $1 million plus category, the highest number in one month for 18 months.
“It all adds up to a housing market that is active, confident and stable.”
Mr Thompson said the Auckland market’s main challenge remained the low number of homes available for sale.
In May, Barfoot & Thompson listed 1186 new properties, similar to the number in April and 14.9 percent lower than in May last year.
“Restricted availability is a factor contributing to the price gains being achieved.
“With buyer demand strong, now represents an excellent time for property owners with realistic price expectations to test the market. Properties at the right asking price will sell.”
Mr Thompson said there was a noticeable ‘cooling’ of weekly rentals in May, with the average weekly rent falling to $379, a $20 drop, and the lowest average weekly rent for 19 months.
“We are also experiencing an increase in the number of landlords seeking to use our property management services, and combined with falling rents, this indicates demand for rental property is easing.
“Landlords are prepared to trim their rental expectations to find tenants.”
Mr Thompson said that if the market followed its normal seasonal cycle, market activity would ease slightly during winter.