The Auckland region had its strongest volume sales in December since 2006, says Real Estate Institute chief executive Helen O’Sullivan.
Eastern Beaches followed the trend with median dwelling numbers sold in December up 16 per cent to 167, compared with 144 at the same time last year.
The median number of days it took to sell a property was stable at 30 compared with December last year.
Median prices locally, however, were steady at $565,000 in December compared with $560,000 at the same time last year.
QV values, which reflect the change in market value and not just the value of properties that sold, ended the year at their highest level ever in the Auckland region, 1.4 per cent above the previous peak of late 2007.
QV research director Jonno Ingerson says the property market is heavily influenced by consumer confidence, “so it will be fascinating to see how 2012 pans out. Auckland values are likely to increase further, especially given the population continues to grow, building activity has been weak, and if a lack of new listings of quality properties keep supply below demand”.
Auckland has overtaken Central Otago Lakes as the least affordable region to buy a house, according to Massey University’s latest home affordability report. The affordability index is calculated using interest rates, wages and house prices.
“In view of the financial turmoil in Europe, it is surprising house prices are increasing in several regions, Auckland in particular,” says Professor Bob Hargreaves, of Massey’s School of Economics and Finance. "However, low mortgage interest rates, combined with more relaxed lending criteria, are combining to bring more buyers into the market and new construction is still at a low ebb.”
Affordability deteriorated by 5.8 per cent in Auckland, pipped only by Hawke’s Bay at 11.4 per cent.
However, while the Auckland housing market finished the year strongly, Peter Thompson, managing director of Barfoot & Thompson, says the market overall remains restrained.
House prices, he says, are increasing only modestly, with the average achieved for all of 2011 at $543,124, up 2.5 per cent on the 2010 year.
“While buyer interest is high, they remain realistic as to the price they are prepared to pay.
“At the same time, the number of houses being listed for sale remained low in 2011,” he says.
“December’s new listings at 846 followed the normal seasonal pattern of being low compared with previous months. But the average number of new listings each month for the 12 months was 1220, the lowest average number for more than a decade and 7.7 per cent lower than 2010,” Mr Thompson says.
“We also finished December with only 4583 homes on our books, the lowest number at a month’s end for four-and-a-half years and 1282 fewer homes than at the same time last year.”
Mr Thompson expects the Auckland housing market in the first quarter of 2012 to follow a similar pattern to last year, with prices increasing modestly and choice remaining limited.
“Further out, prospects for a more active market are positive,” he says. “The population of Auckland is growing and new house starts remain low, leading to the city facing a major shortage of accommodation.
