Sales up and trend could continue

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Sales up and feedback suggests trend could continue

20 March 2009: 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, according to Harcourts New Zealand CEO Bryan Thomson.

Commenting in the latest Harcourts MarketWatch (attached) Mr Thomson says last month saw the number of sales written by Harcourts, New Zealand’s largest real estate group, at the highest level since February 2008.

“This is an encouraging sign,” he says, along with the marked increase in traffic to Harcourts website experienced in the same month and the anecdotal feedback being received from the Harcourts New Zealand team.

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

Harcourts auctioneer and North-Shore based business owner Andrew North echoes Mr Thomson’s comments about the success being achieved with auction campaigns.

He says 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 North describes the current market as “fairer”, saying vendors are 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 says there is 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 says the five offices in her group are all reporting increased numbers of “motivated sellers” and a “big bevy” of serious buyers looking to seize good opportunities available.  

Also talking about today’s market being “fair” and the auction advantage, she says Harcourts Gold team is listing a good volume of properties each day, “but the challenge is to stand out from the masses with their marketing campaign”.

Harcourts National Auction Manager Phil McGoldrick says with prices having come back and interest rates dropping there’s definitely more activity in the real estate market around New Zealand, with auctions being a popular and successful method of sale.

“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,” he says. 

“One thing I’ve been noticing recently is parents pulling money out of the bank, where it’s not earning much, and using it to help their kids get to the 20% deposit threshold while interest rates are so low.  Along with the return of investors this is helping generate interest for lower priced homes.”

In the Wellington/Kapiti Coast area too Harcourts Business Owner Eliot Falconer is 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.”

Mr Falconer says his 12 office group has been selling a lot of cheaper properties, “but as confidence comes back into the market, good quality higher value homes are selling well too, and we could do with more of those listings to sell”.

Bay of Plenty-based Harcourts Business Owner Simon Martin says in recent weeks his company’s open homes have achieved double the numbers of November and December, “which is a good gauge from the coalface”.

His eight office group had a “massive” February in terms of written sales, and given the renewed demand he’s keen to see more good quality properties listed for sale.

Harcourts New Zealand CEO Bryan Thomson is predicting a slow lift in the number of sales transacted during 2009 and for prices to remain stable at best.

“As our mothers might say, this market is one for ‘sensible shoes’ on all feet, including those of the people making comments and predictions,” he says.

ends
 

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