House prices and sale numbers up

Relatively low mortgage interest rates could be firing up Auckland's housing market and encouraging more people to buy.

Shamubeel Eaqub of the NZ Institute for Economic Research said cheaper funding costs could be a factor behind the Auckland market appearing to recover.

Barfoot & Thompson said yesterday their data illustrated an Auckland house sales recovery last month.

"House sales are consistent with stabilisation returning in the economy. The level is still not as strong as before the slump, but it looks as though the significant reduction in interest rates is gaining traction," Mr Eaqub said.

Mortgage interest rates are now around 5 to 6 per cent but Westpac economists yesterday warned against believing in a housing recovery, saying early signs were more of a flash in the pan than real evidence of a change.

Barfoot & Thompson's volumes are ahead of last May when 515 sales were made compared to last month's 814 sales. Director Peter Thompson said his firm, which sells one in every three Auckland houses, had just had its best month in two years. He said the housing market was now active, confident and stable.

To read the full NZ Herald article click here

Posted: 5 Jun 2009

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