You are using an older browser version. Please use a supported version for the best MSN experience.

Auckland house prices hit new high in Feb

NZ Newswire logoNZ Newswire 2/03/2017 Sophie Boot

Auckland house prices reached a record high in February, despite sales numbers dropping to their lowest in six years, the city's largest realtor says.

The average sale price rose 3.4 per cent to $944,574 in February from January, Barfoot & Thompson said in a statement.

That a 2.6 per cent gain on the average for the previous three months, and a 14.9 per cent increase from February 2016. Monthly sales volumes fell 11.6 per cent to 529 from January and were down 20.3 per cent from February last year.

On Wednesday, state-owned valuer Quotable Value reported the average value of a New Zealand home rose 13.5 per cent to $631,349 in February from a year earlier.

That growth has been centred in Auckland in recent years as the country's largest city faces a shortage of housing to meet a growing population, though lending curbs have helped slow growth, with values shrinking 0.7 per cent over the past three months to $1.04 million, an annual gain of 12.8 per cent.

The housing market is being buoyed by record migration and low interest rates, even as the central bank tightens lending restrictions in attempts to reduce the risk to financial stability.

Barfoot & Thompson director Kiri Barfoot said prices at the top end of the Auckland market were not under downward pressure, with competition for properties around $1 million strong.

"The number of new listings for February at 2295 was our highest ever in a February (month) and combined with the low number of sales in the month saw available listings at month end at 4546," Barfoot said.

The latest Barfoot data shows 34 per cent of all the properties the realtor sold in February went for more than $1 million. Sales under $750,000 were down by a third on 2016 and were less than half of those in 2015.

image beaconimage beaconimage beacon