The Auckland housing market experienced its busiest May trading in seven years, says Peter Thompson, managing director of Barfoot & Thompson.
“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,” he says.
The Auckland region set a new record median of $500,000 in the 12 months to May, according to Real Estate Institute of New Zealand figures. Eastern Beaches median prices reached $620,000, up 11 per cent on $561,000 the same time the year before.
Dwelling numbers sold were up 24 per cent to 231 in May from 187 the same time the year before in Eastern Beaches. And it took 29 days to sell a property, down from 37 last year and from a peak of 55 days in May 2008.
The Auckland market had a strong month in May with a sizeable lift in volumes and a new record median high, says Helen O’Sullivan, REINZ chief executive.
“First home buyers and investors are active in the market at lower price levels,” she says. “But the real driver of these results is the shortage of housing.”
Auckland led the way in value increases in May, says Jonno Ingerson, QV research director.
“Sales activity has remained relatively strong for the past couple of months with no evidence yet of the usual decline in sales seen over winter,” he says.
“There are now buyers who have been looking for a house for some time and either cannot find something that meets their needs, or are being out-bid by other keen buyers.”