8 Jan 2018

Auckland property market 'cooling'

11:29 am on 8 January 2018

Auckland's housing market continues to grow - but at a slower rate.

An auction sign outside a house for sale in Auckland.

Photo: RNZ / Cole Eastham-Farrelly

Data from Barfoot and Thompson shows the median price in the country's biggest city rose 4.8 percent to $870,000 last month, compared to November's $830,000.

In December 2016, the median price was $840,000.

Managing director Peter Thompson said the market has calmed down.

"The Auckland market has been reined in from rapid price increases and has settled into a more stable trading environment," he said.

He said measures to cool the market were working.

"Undoubtedly, the measures progressively introduced by the Reserve Bank, a more prudent approach to mortgage lending by the trading banks and a growing apprehension among buyers as to the prices being paid all played their part in cooling the market," he said.

Mr Thompson added that the number of homes sold in 2017 fell by more than a quarter on the numbers sold in each of the previous three years.

"The sense of urgency to buy a property regardless of its asking price has disappeared."

However he said numbers have continued to rise modestly.

"Normally when sale numbers fall by such a large percentage, prices retreat from their record high levels."

New listings fell 26.4 percent on a year ago to 571, in what is typically a quiet period for the property market, as buyers' attention turns to the Christmas and New Year break.