Real estate agency Barfoot and Thompson reports big spike in Auckland house prices in June, says new regulations not dampening cost

House key.
Barfoot & Thompson says new Government regulations haven't dampened Auckland house prices. Photo credit: Getty Images

Auckland's largest real estate agency has reported yet another house price spike in June.

In a report released on Monday, Barfoot & Thompson said new Government regulations and winter hadn't dampened Auckland house prices nor the number of properties sold last month. 

Agency managing director Peter Thompson said Auckland sales usually start to edge lower in June - but not in 2021.

He said both the median and average prices for the city were higher than in May.

"This year we sold 1243 homes, up 3.8 percent on those for the previous month."

The average house price in Auckland in June had risen to $1.14 million - up 2.6 percent from May, while the median price spiked 3.4 percent to $1.1 million.

"Demand for housing, low levels of supply, and record low mortgage interest rates are continuing to prove a stronger counterbalance to the new regulations looking to pull back the rate of price increases," Thompson said.

He said the rate at which prices are growing remains stubbornly high - with demand for high-end housing still red hot. The agency sold 120 houses for more than $2 million in June, Thompson said.

"Throughout last year, our monthly average for the number of homes that sold for more than $2 million was 61."

Last month, Finance Minister Grant Robertson said New Zealand was still facing the aftermath of a perfect storm when it came to housing. 

"We took this action. We always knew it would take a little bit of time to flow through but we are now starting to see the trend going in what I consider to be the right direction," Robertson told The AM Show.

"It is going to take a while given the momentum that's been in the housing market."