5 Apr 2013

Auckland house prices hit record high

7:02 am on 5 April 2013

The average house price in Auckland has hit a record high of $645,928 due to a spate of $1 million home sales.

The average price rose by 6.9% in March, topping the previous record of $627,721 in November last year.

Thirteen percent of all sales in March were for homes worth more than $1 million.

Barfoot and Thompson managing director Peter Thompson said demand for homes in inner city suburbs is driving up prices.

He says in areas like Mount Eden, Epsom, Grey Lynn and Ponsonby houses that were selling for about $800,000 to $900,000 a year or two ago are now fetching more than $1 million.

Mr Thompson said the shortage of new houses being built in Auckland is likely to continue for the next three to four months and while there is a limited supply prices will continue to increase.

Mr Thompson does not believe house prices will stay as high as last month, and is predicting they will fall to an average of $605,000 - $610,000 as seen in February.

While the top end of the market has been strong, he said, there has also been a lot of activity lower end of the market, with homes in the under $500,000 price category making up 38% of sales in March.