Auckland house prices not held back by mortgage restrictions

Photo: Sandy Austin

The report from estate agent Barfoot & Thompson found that mortgage lending had “no measurable impact” upon values, with house prices in Auckland rising 6.9 per cent to $600,000. The average sales price also climbed to $657,912, a rise of 1.6 per cent, or $10,000.

Peter Thompson, Managing Director of Barfoot & Thompson, described the steady price rise as “modest” and “in keeping with” the rate of growth since March 2013. Nonetheless, he notes that the median and average price are the highest they have ever been.

Sales dipped 7.9 per cent in September compared to August, but Thompson dismisses the decline as nothing to be concerned by. Indeed, sales are actually 14 per cent higher compared to September 2012.

“Month by month variations in sales numbers are common,” he said, “and if the Reserve Bank’s new regime was to have had an impact, I would have expected more rather than less sales in September as buyers sought to get in ahead of the new deposit requirements.”

Indeed, with school holidays occurring this month, he predicts that it could take up to six months to determine whether the lending changes, which were introduced at the start of October, will have any medium term impact on prices or transactions.