7 Aug 2008

Auckland property market seen as reaching its bottom

7:31 am on 7 August 2008

Barfoot & Thompson says the residential property market has reached its bottom in Auckland with the average house price falling and fewer people putting houses on the market.

Sales figures for July show 13% more houses sold, but the average sales price dropped 5.3% to just over $497,000.

The real estate company says sales activity increased because vendors dropped their prices to meet the market.

Managing director Peter Thompson says the company had only 1500 listings in July, reflecting cautiousness by homeowners.

He says the market appears to be stabilising, and expects more quality listings in spring and summer months.

Barfoot & Thompson also says the average weekly house rental dropped from $391 in June to $384 in July. Some vendors may be choosing to let their properties rather than sell on the current market.