Auckland house prices hit new high

Real estate agents are declaring that higher prices are being achieved for Auckland properties, but is it just the experience of a few isolated sales or an all round improvement?

The latest monthly report from real estate agency Barfoot & Thompson revealed that prices achieved on the sales of Auckland properties are at a 22-month high.

In October, the average price it achieved on residential homes in Auckland was $544,745.

Real Estate Institute of New Zealand data which uses the median method to calculate the average price achieved on home sales in an area doesn’t have October figures yet.

But it had the average price achieved in the central Auckland region at $363,750.00 in September 2007. In September 2008 it was only $288,000.00 and in September this year it was back up to $351,500.00.

Barfoot & Thompson said it saw a 5.8% increase in October prices from the previous month, up 4.8% on the same time last year.

“The prices achieved in October were exceptional, and we have not seen average prices comparable to this since December 2007,” Barfoot & Thompson managing director Peter Thompson said.

Remax Platinum Auckland real estate agent Grant Tucker said that he believed prices were in some cases above what they’d been in the 2007 peak.

“We’ve sold a number of properties recently that were purchased at peak prices in 2007 and we’ve achieved higher prices than what they were purchased for,” Mr Tucker said.

“I believe above prices are now slightly above what they were in the 2007 peak.”

Newbie agency Custom Residential, which formed in January has had its best month yet in terms of sales according to director Johnny Wills.

The agency focuses on Ponsonby/Grey Lynn and surrounding areas, and Mr Wills said prices achieved are often above what he saw working as an agent in the area during the 2007 peak.

“We had a property in Leighton St in Grey Lynn attracted a huge amount of interest, about 300 people visited the property during a three week marketing campaign,” Mr Wills said.

“Several people got valuations done on it that came in at the $1.3 to $1.35 mark, but it sold for $1.53 million.”

It isn’t just the prices achieved that is improving, the number of properties being transacted is lifting too.

Barfoot & Thompson sold 73% more properties in October than it did in the same month the previous year, with 871 properties sold.

“It is a sure sign Aucklanders have shrugged off their concerns about the future, and are moving forward with their plans around home ownership.”