House prices reach new average high

03:15, Jul 04 2012

Auckland house prices have reached a new average high of $589,251 due to a shortage of properties and buyers committing to sales, a leading real estate company says.

About three quarters of homes sold in the past month by Barfoot and Thompson - who sell around one in three residential properties in Auckland - went for well over $500,000 with 84 going for more than $1 million - further increasing the average price.

According to chief executive Wendy Alexander the demand for residential properties has skyrocketed in the past 12 to 18 months, with the increase down to people moving from renting to buying their own home, and the city's population growth.

"In such a market, prices will increase, and in June the average price increased by 1.2 per cent over that for May,'' she said.

"Demand is outstripping the availability of property."

The company sold 994 properties in June- the highest number in that month for five years - and also had the lowest number of listings on it books in seven years at the end of the month.

Alexander said the new average sale price was more than 8 per cent higher than the average sales price for the whole of last year.

She added that there were 1245  new listings in June which was in line with expectations for the middle months of the year but insufficient to satisfy significant buyer demand.

"The number of homes being listed in recent months is in line with normal trading patterns over the past few years. What has changed is an increase in the number of buyers, and they are creating a demand that was not there 12 to 18 months ago.''

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