House sale price average down $47k in one month

Auckland's average house sale price fell by $47,632 between December and January.

Barfoot & Thompson's data yesterday showed December's average $552,933 sale price dropped to $505,301 last month.

Volumes were also down from 648 sales in December to 583.

Managing director Peter Thompson blamed summer holidays and the traditional exodus from the city in warmer weather.

Shamubeel Eaqub, principal economist for the NZ Institute of Economic Research, said once typical seasonal patterns were taken into account, the city's housing market still slowed very sharply in January.

"In particular, sales volumes have plunged and are now similar to early-2009 levels. Also, the weak level of sales means that there is suddenly plenty of homes for sale. There is now nearly nine months' worth of homes listed for sale, similar to the level in early 2009."

Rising mortgage interest rates and a fragile economic backdrop were more to blame than the warm weather, Mr Eaqub said.

To read the full NZ Herald story, click here

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