Lower prices and sales plunge reflect weak housing market

Auckland's residential property market is weak, economists say, with the city's largest estate agency saying sale numbers and prices are down on this time last year.

Barfoot & Thompson said the June total of 665 sales was 16 per cent lower than for the previous month, and the average price of $523,058 was down 3.6 per cent.

In June last year, the agency sold 861 properties.

ASB economist Jane Turner described the housing market activity in the report as "very weak", with the June sales numbers down a seasonally adjusted 15 per cent.

The Barfoot & Thompson figures provided a preview to likely movements in Real Estate Institute of New Zealand nationwide figures due on July 14, she said.

"Housing market activity is likely to remain very weak throughout the remainder of 2010, reflecting waning demand."

Tax changes around depreciation rules had reduced the attractiveness of holding investment property at the margin.

To read the full NZ Herald article, click here

Posted: 6 Jul 2010

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