Auckland house prices fall 5pc

Auckland property prices fell less than five percent last year although sales were heavily down on 2007, real estate company Barfoot & Thompson says.

Sales statistics from Barfoot, which estimates it makes about one third of all Auckland house sales, show the average sale price in Auckland over 2008 fell 4.7 percent to $513,597, compared to $538,478 in 2007.

Nationally the average house price fell 6.8 percent, according to national valuation company Quotable Value.

However, Barfoot's statistics also show the average number of Auckland sales per month almost halved last year to 547 from 915 in 2007. The new listings signed up per month in Auckland fell to 1407 last year from 1639.

Managing director of the realtor, Peter Thompson, said the relatively small decline in sales prices was good considering dire predictions, and should help lend confidence to the market.

He added that 2008 ended on a high note, with a rush of sales in the final week which helped bring about a 1.7 percent rise in average sale price - to $509,513 - from November. Barfoot said it recorded 227 sales in its last week of the year, ending on December 19, its best week of 2008.  Average weekly sales for the year were 171 versus 281 in 2007.

Thompson believes the increased activity in December was due to people reacting to interest rate cuts by the Reserve Bank.

"We've certainly seen an improvement in the market since the Reserve Bank's most recent move. It seems to have tipped the balance in terms of converting interested parties into committed buyers," said Thompson.

Barfoot let 579 properties in December compared to 435 in December 2007. The average weekly rent ended the year at $394 versus the 12 month average of $388.

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