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Auckland house price growth slows

NZ NewswireNZ Newswire 2/06/2016 Tina Morrison

© Getty Auckland house price growth appears to be stabilising since hitting a record in November last year, according to the city's largest realtor.

The average sale price edged up 0.1 per cent to $874,623 in May from April, Barfoot & Thompson said.

That's up 2.4 per cent from the previous three months, and a rise of 6.4 per cent from May last year. The average price hit a record $876,075 in November 2015.

Monthly sales volumes jumped 38 per cent to 1,306 from April, and were up 6.6 per cent on May last year.

"This is well down on the 12 per cent increase we saw in the 2015 calendar year," said Peter Thompson, managing director of Barfoot & Thompson.

"In the last two months, the number of sales has not influenced prices. In May, turnover was high and in April turnover was low, yet for both months prices remained relatively static or fell."

The government and the Reserve Bank have both introduced new measures in an attempt to cool Auckland's housing market, where migrants and investors are adding to competition for a shortage of housing stock.

Housing Minister Nick Smith on Thursday unveiled the government's biggest weapon yet in its attempts to solve Auckland housing unaffordability.

The National Policy Statement lets it force local councils into making enough affordable land available for housing and business development.

The latest Barfoot data shows more than a third of all the properties the realtor sold in May went for more than $1 million, with just 14 per cent selling for less than $500,000.

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