Auckland's biggest real estate company, Barfoot and Thompson, says the housing market is picking up - with the firm enjoying its busiest trading month in two years.
Economists at Westpac, say, yes they are right, the housing market is recovering, right across the country.
But they are warning higher prices are not likely to last.
Auckland real estate agent Ross Brader was organising photos today for a house he is trying to sell.
It is the only house on his books.
Mr Brader says in Point Chevalier there is a lack of sellers.
“This is what I find strange. I really can’t come to grips with why people don’t want to sell when there is a serious shortage of stock. We have got the buyers, we just don’t have the sellers,” he says.
He is not alone.
Barfoot and Thompson says a shortage of quality listings is helping lift prices.
Its average sale price rose 6.2 percent in May compared with the previous month to almost $534,000.
Eight hundred and fourteen houses were sold – up 58 percent on a year ago.
Although that is still well down on the numbers being sold two years ago.
“When we go back to 2007 it was around about 1100 properties,” says Peter Thompson of Barfoot and Thompson.
“So still a long way to go to get back to 2007, if we ever get back to that level.”
Despite the recession, the housing market seems to be bouncing back.
Seasonally adjusted house sales have leapt 74 percent in five months, from rock bottom to roughly average.
And the real estate institute's median house price has risen $15,000 in three months.
The economists at Westpac say the pick up in the housing market is very real. But they warn it is not likely to last.
They believe prices will come down because of a rise in longer term mortgage rates.
“Fixed mortgage rates have risen and we think that is going to undermine the housing market pick up,” says Westpac Research Economist Dominick Stephens.
He believes house prices will fall five percent over the next 18 months - as unemployment rises and more people are forced to sell their homes.
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