Activity was exceptional in the Auckland property market in December, helping boost prices to near the height of the 2007 property boom, according to the city's largest real estate firm Barfoot & Thompson.
"Activity was exceptional for a December, and we sold 648 properties, our highest number of sales in a December for two years, and 40.6 percent higher than in December last year," said Peter Thompson, the firm's managing director.
"Regardless of how you analyse the sales data, sellers are now achieving almost a similar price for property as they would have at the height of the 2007 property boom."
The average price of properties sold in December in Auckland was $552,933, the highest average monthly price in 24 months.
Average monthly prices have now increased for the past three months. The average monthly price for 2009 of $522,297 is 1.7 percent higher than that for 2008 and 3 percent down on 2007.
"You have to go back to the height of the 2007 property boom to see comparable prices," Mr Thompson said.
"Unlike 2007, however, buyers are committing on the basis of value for money and lifestyle decisions, rather than expectations of substantial capital gain."
The average of 782 sales per month in Auckland in 2009 is down 14.5 percent on 2007 but is up 43 percent on 2008.
Mr Thompson expects prices to remain stable in the first quarter of 2010 as buyers anticipate rises in interest rates.
"New listings in December at 965 held up well, and were the highest for a December for two years but we entered January with only 5431 properties on our books, our lowest number in a January for two years."
Average weekly rents in Auckland fell for the second consecutive month and at $389 in December are 3.5 percent below their peak in October.
The average weekly rent for 2009 was $388, the same as for 2008.
NZPA