Auckland house price rises stall as properties 'fully priced'
Have house prices plateaued?
Auckland house price growth appears to have stalled, even as turnover remains high.
Properties are deemed "fully priced," Barfoot & Thompson managing director Peter Thompson says.
The average Auckland sales price in July of $827,359 was little changed from $826,474 in June and $822,148 in May, Mr Thompson says.
It is 15% ahead of the $719,312 average price from July last year. The company sold 1388 homes in July, 19% ahead of June and 41% higher than July last year, marking the most sales for the month since 1999.
"The first signs price increases were slowing could be seen in last month's sales figures, and this month's results confirm that prices are no longer racing ahead," Mr Thompson says.
"The combination of high turnover and stable price points to buyer confidence in the strength of the market at current prices but also recognition that property is fully priced."
Auckland's spiralling property prices, underpinned by a supply imbalance, have been a concern for the Reserve Bank as it monitors risks to the country's financial stability. The central bank cut its benchmark interest rate in June and July to bolster the slowing economy and at the same time has outlined plans to impose lending restrictions on property investors from October, while the government has told its tax collection agency to police capital gains more forcefully.
Barfoot & Thompson says its 1777 new listings in July were 1.6% ahead of June and 27% ahead of July last year.
The realtor had 2802 properties on its books at the end of the month, the lowest level since December last year, which it says is likely to contribute to choice "remaining tight" this month.
During July, the company made 411 sales of properties worth at least $1 million, the second-highest month on record. There was also strong interest in properties under $500,000, which made up 14.4% of all sales from 13.6% in June.
(BusinessDesk)
Tina Morrison
Wed, 05 Aug 2015
Wed, 05 Aug 2015
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Auckland house price rises stall as properties 'fully priced'
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