Months of flat house prices ahead

House prices fetched by Auckland's biggest agency are flat and might stay that way for a few more months.

Peter Thompson, Barfoot & Thompson managing director, said May figures showed the Budget held no big shocks and the numbers "reflect a stable and balanced market". Barfoot's average price last month was $542,806, only marginally up on April's $541,486.

This week, a report from realestate.co.nz showed prices sliding nationally but Auckland's market in somewhat better shape.

Mr Thompson highlighted the rise in sale volumes to 792, up on April's 671 deals but still well behind the year's peak in March of 927 deals.

Shamubeel Eaqub, NZIER principal economist, said the agency's numbers were no surprise.

"Sales are still flat. Rising mortgage rates have been the main influence and will continue to be so in my view," he said.

"The Budget changes were marginal and are unlikely to have major impact on prices and rents."

To read the full NZ Herald article, click here

Posted: 4 Jun 2010

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