Barfoot & Thompson's sales continued upward in May - too soon to say if new lending rules will have much effect on Auckland market

The average price of homes sold by Barfoot & Thompson in May hit a new all time high of $822,148.

That was up 2.2% compared with April's average price of $804,282 and up 17% compared with the average price of $702,966 in May last year.

That means the average price of homes sold by Barfoots, which is by far the largest real estate company operating in the Auckland market, has increased by an average of $2292 a week over the last 12 months.

The agency sold 1225 residential properties in May compared with 1070 in April and 1109 in May last year.

The median selling price was $750,000 in May, down a tad from $753,500 in April but well up on the May 2014 median of $$645,000.

Barfoot & Thompson managing director Peter Thompson said it was too early to know whether the new taxation measures announced in the government's Budget, would have any impact on the market.

"If the budget initiatives are to have any influence, they are likely to show up in June's activity," he said.

"Buyers are mindful that prices are at an all time high, but the combination of a sound economy, low mortgage rates and a housing shortage gives them confidence prices are not on the verge of retreating."

Thompson said May was the third month in a row the company had sold more than 1000 homes, while there were only four months in the whole of last year when sales were above 1000.

The company had undertaken a major drive to secure new listings last month and this had added 1740 new homes available for sale, the highest number of listings achieved in the month of May for eight years.

However, the high number of sales in May meant it only had 3060 homes available for sale at the end of the month, the lowest number since January.

"In the past decade, only in 2013 have we been able to offer such limited choice as we entered winter," Thompson said.

The company sold 362 homes for more than $1 million in May compared with 163 for less than $500,000.

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