Business

Auckland house prices hit new high

13:38 pm on 1 July 2015

Auckland's housing market has hit new records, with the average price breaking $800,000 for the first time and inventory shrinking to its lowest point in more than nine years.

Photo: AFP

Realestate.co.nz said the average asking price for Auckland jumped nearly 3.5 percent compared with the previous month, to $820,000 in June.

The national average price increased nearly 1 percent to a new record high of $537,000.

More properties were listed but demand outstripped supply, causing Auckland's inventory of housing stock to hit a new record low of 9.6 weeks, and a national low of 20 weeks.

ASB senior economist Chris Tennent-Brown said the lack of choice for buyers was pushing up prices.

"When it's this unbalanced, there's so few listings, you just know that there's going to be a lot of pressure in the market and people are going to have to pay a high price to get a house."

"We just need to be building more houses," he said.

Mr Tennent-Brown said interest rates were expected to fall further which was likely to fuel demand for houses.