Average price of a home in Auckland reaches new all-time high

The average price of residential property in Auckland, New Zealand, increased to a new all-time high of $822,148 in May, a month on month rise of 2.2%.

Indeed, since February prices in the city have now increased by 10% and sales are also strong, according to the latest data from real estate agent Barfoot & Thompson.

The data also shows that the median price in May at $750,000, a fall of $3,500, or 0.5% compared to April but since February the median prices has increased by 9.2%.

In May sales activity was extremely strong with sales numbers up over those for April by 14.5% and buyers have continued confidence in the market, according to Peter Thompson, managing director of Barfoot & Thompson.

‘Buyers are mindful that prices are at an all-time high, but the combination of a sound economy, low mortgage rates and a housing shortage gives them confidence prices are not on the verge of retreating,’ he added.

He pointed out that measures announced in the May Budget had no impact on market activity. ‘If the budget initiatives are to have any influence they are likely to show up in June’s activity,’ he added.

With sales in May at 1,225 it was the third month in a row that the firm sold more than 1,000 homes in a month, a milestone that was never achieved in 2014. The firm experienced a major listing drive in April and early May, and through this achieved 1,740 new listings in May, the highest number in a May for eight years.

‘As a consequence of high sales in May by month end we had only 3,060 properties on our books. There have been only two months over the past 16 months when we have ended the month with a lower number of properties,’ said Thompson.

Sales of properties for in excess of $1 million attracted strong buyer interest and the firm sold 362 properties in this high end category, the second highest number on record behind March’s 420.

However, property sales for under $500,000 at 163 were, for the third consecutive month, below the number of $1 million sales.