Auckland house prices boom

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Auckland house prices returned to pre-credit crisis levels in November, hitting highs not seen in almost two years according to real estate firm Barfoot & Thompson.

In a statement released today, Barfoot - which handles around one-third of all home sales in the Auckland region - said November's median sale price was $550,217, the highest in 23 months.

This represents a 1 percent rise on October prices and a 9.9 percent rise from November last year.

Barfoot managing director Peter Thompson said November was the third consecutive month of price rises, confirming prices had consolidated around present levels.

"Auckland property has now recovered all the losses experienced over the past two years," said Thompson.

"The level of activity and strength of prices in the housing market is a strong signal that in Auckland at least property has returned to being seen as a sound, medium to long-term investment option."

Despite the price levels now in line with those achieved during the highs of the property boom in 2007, Thompson said the current market was more measured and rational.

"While low interest rates are a factor, buyers are committing on the basis of the property meeting their check lists and views about value for money," he said.

"They are not being driven by concerns that they must act or they might miss out."

Barfoot saw more than 1600 newly listed properties in November and has around 5600 listings - its highest stock level since May.

It sold 862 properties last month, 57.8 percent up on the same period last year when housing was in the doldrums.

Meanwhile, rental prices are slightly more unsteady, with the average rental price last month at $397 per week, $5 down on October but $16 up on November last year.

- © Fairfax NZ News