4 Dec 2013

Auckland house prices up in November

7:41 pm on 4 December 2013

Barfoot & Thompson in Auckland says its average sales price for a house rose 3.2% in November from October. The average house it sold in November was worth $684,646.

Managing director Peter Thompson said the number of houses the agency sold in November fell 7.1% to just over 1100, down from 2016 in October.

However, Mr Thompson said what may have occurred in October was a rush of activity in anticipation of the new restrictions by the Reserve Bank on banks lending to people with small deposits from 1 October.

He said the number of houses Barfoot & Thompson sold in November was still higher than in September and in line with sales in November 2012.

By and large, Mr Thompson said the Reserve Bank's restrictions are not yet having any impact on sales volumes or prices. However, the restrictions may be responsible for a fall in the number of auction sales.

Mr Thompson said this may well be a sign that buyers don't have the same flexibility as previously and need confirmation from their banks before completing a house purchase.

He said a number of properties which fail to sell at auction are being sold a little later following negotiations between the parties.