As we were saying late last year, sales have been at below sustainable levels - with even those people who needed to buy or sell due to a change in their personal circumstances holding off. However, over the past few months the volume of sales around New Zealand has returned to more “normal” levels with that pent-up activity now taking place.
“In addition, according to feedback from around Harcourts, investors are back in the market now that the figures stack up better for them and many people are taking the opportunity to trade-up, given prices have eased and if they refix their mortgage at lower rates they can therefore afford a bigger home loan,” Harcourts New Zealand chief executive Bryan Thomsom said.
Mr Thomson said since February, a degree of confidence appeared to have returned, with a lot of buyers out there and more enthusiasm about the market.
“I think many Kiwis are sick of the doom and gloom, instead they see opportunities and have decided to be positive, stop stalling and to take action in the real estate market,” he said.
“Also, it’s well over a year since the New Zealand property market ‘turned’ after a number of years of heady price rises and high turnover, so most sellers coming to the market now are fully conversant with the new environment and current values, as are buyers. The outcome is that the expectations of the two are more aligned and there’s an increase in sales numbers.”
Mr Thomson said sellers who had been hanging on and hoping for higher prices were being ignored by buyers who were competing for quality property being offered by more realistic sellers.
Meanwhile, buyers who are not conversant with current values and competition and therefore come to the market with unrealistic expectations and are too slow to act are also being disappointed.
Mr Thomson, who predicted it could be a while before prices rebound, said in some areas there was not enough listings to meet buyer demand.
“And with lower numbers of properties coming onto the market in winter months competition from the buyers out there will only increase, so all sellers should consider auction as a selling strategy.”
For all your real estate needs, whether buying, selling, property management or rentals, contact me for a no obligation consultation.
Dil.Shroff
Mobile: 021 143 9679
Office: 09 n6232700
After Hours: 09 6257678
Harcourts - OCI Realty Ltd MREINZ
373 - 375 Dominion Road, Mt. Eden, Auckland.
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