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Busiest May in seven years for Auckland realtor, prices up 2.5%

Hannah Lynch
Wed, 06 Jun 2012

BUSINESSDESK: The Auckland housing market had its strongest May in seven years, with the average sale price hitting a record level.

Barfoot & Thompson, which sells about one in three Auckland residential properties, said the average May sale price rose 2.5% to $582,285.

That is the highest average price the firm has ever recorded.

Sales increased 31% to 1165 on the same period a year, a 55.3% jump on April's 750 sales.

"A significant number of new listings, keenly priced mortgage lending rates, fine weather and a large pool of potential buyers all played their part in the level of activity achieved," managing director Peter Thompson said.

"The low number of new homes built in past years, coupled with Auckland's population growth, has created a situation where supply remains the issue, and this is reflected in the prices being obtained."

March and April normally represent the high point of "summer" sales activity and prices as volumes tend to ease, though the "market shows no signs of slowing down as we approach winter", Mr Thompson said.

The number of new listing rose 12.2% when compared to the month earlier.

The company sold 91 homes valued at more than $1 million, while a little more than half the total sold were valued at less than $500,000.

Hannah Lynch
Wed, 06 Jun 2012
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Busiest May in seven years for Auckland realtor, prices up 2.5%