Auckland prices falling
Auckland house prices are definitely falling, the city’s biggest real estate agency says.
Barfoot & Thompson has released its statistics for June, which show the average sales price for its sales was $913,606, 3.1 per cent down on the average of the previous three months and only 0.6 per cent higher than a year ago.
It is the first time this cycle that the agency has reported a price drop - QV and the Real Estate Institute have already acknowledged it happening in parts of the city.
‘‘The median price for the month was down 2.9 per cent on the average median price for the previous three months and the same as it was for the same month last year,’’ said managing director Peter Thompson.
‘‘While prices invariably fall as we head into winter, June’s results confirm that prices are definitely falling. Monthly sales numbers have been below the previous year’s numbers for nine consecutive months, and that is finally having an effect on prices.’’
He said it was positive that prices were edging down rather than falling rapidly. ‘‘Current prices still represent a good outcome for vendors.’’
The 855 sales in June was a drop of 26.8 per cent on June 2016.
‘‘Sales for the month were their lowest in a June for seven years,’’ Thompson said.
The fall is attributed to high prices and banks’ stricter lending criteria, making it harder for non-cash buyers.