Property: Sales up and 'trends could continue'

An increase in the volume of written sales, plus ongoing positive feedback from within the industry and a marked lift in traffic to Harcourt’s website are encouraging signs for the local real estate market, says  Harcourts New Zealand chief executive Bryan Thomson.

 “In addition to writing more sales, as the latest statistics show, there has been reporting a distinct lift in the level of buyer enquiry and a big jump in open home attendance,” he said. 

“They have also been commenting on increasing numbers of multiple offer situations along with excellent success rates both ‘under the hammer’ at auctions and via subsequent negotiations.”

The numbers attending auctions has been high recently and there have been good success rates too, with auctions “providing an environment where buyers make a decision more easily”.

Mr Thomson described the current market as “fairer”, saying vendors were now being more realistic about their price expectations and buyers are responding well in negotiations with those who are prepared to meet the market. 

He said there was a lack of good quality new listings available, so potential sellers should be looking at what is happening, as now appears to be a good time to act.

“There are more buyers around now, and particularly if you are looking at upgrading it’s a great time to make the move up the ladder, especially if you can take advantage of the lower interest rates.”

Christchurch-based Harcourts business owner Lynette McFadden said the five offices in her group were all reporting increased numbers of “motivated sellers” and a “big bevy” of serious buyers looking to seize good opportunities.  

“People with money invested it the bank are realising there’s no point keeping it in there, especially if they’re looking at a medium to long term investment in real estate and can lock in their finance at low rates,” she said. 

In the Wellington/Kapiti Coast area too Harcourts business owner Eliot Falconer was reporting a definite increase in activity.

“Open home numbers are up significantly and I agree that most sellers are now more realistic about price.  I think they understand this is not just a brief dip in the market but more of a realignment.”