Real estate market sustainable by design not accident

Published: Mon 15 May 2017 03:45 PM
Century 21 New Zealand
Monday, 15 May 2017
Real estate market sustainable by design not accident
Kiwis have nothing to fear about real estate in 2017 thanks to solid economic growth forecasts, buoyant confidence, low interest rates, and a range of measures that have been unleashed in recent years, says Geoff Barnett, National Manager of Century 21 New Zealand.
“Last year some pundits were predicting doom and gloom, but overall the market continues to truck along better than even us optimists were forecasting. Yes, Auckland has levelled out and is more of a buyers’ market now. However, in saying that Auckland has merely normalised with the market now showing more realism and genuine sustainability.”
Mr Barnett says steps taken by the Reserve Bank and Inland Revenue have helped slow down the likes of investors and speculators in a measured way without stripping Kiwis’ equity from their largest assets. At the same time the Government and key councils have released more land, with the construction sector then successfully gearing up to build more houses.
“There have been a myriad of policies, plans, and players involved that have collectively ensured the delivery of a very well managed soft landing. I think the country’s response to what could’ve been a real boom and bust has been exemplary and has only helped with underlying confidence going forward.”
He says Wellington has been very strong in the past year, and Century 21’s Waikato, Central North Island and Manawatu offices remain particularly buoyant.
“When comparing May to 12 months ago, we’re up still up across the group on our number of listings, sales volumes, and sales prices. However, the ‘days-to-sell’ period is one measure that the entire industry agrees has extended particularly in Auckland as have the numbers passed in at auction.
“The days of quick sales and crazy prices have gone, but where there’s a willing seller and buyer we’re still seeing the negotiation of a price that everyone’s happy with. Auckland vendors are also becoming more realistic with asking prices and attained prices getting closer.”
Mr Barnett says the buyers’ market in Auckland is now testing many agents in the industry who have only ever worked in a sellers’ market.
“It’s no longer just about loading the property onto the internet and naming your price. Vendors are now really doing their due diligence on an agent’s ability to market, negotiate, and sell. More than ever they vendors want agents and agencies that have the best shot of still being able to secure a great sale price.”
He says while real estate will remain strong in 2017, the third and fourth quarter might get a little tighter with a general election and the likelihood of rising interest rates.
“With vendors’ more realistic, listings slimmer during winter but buyer demand ongoing, right about now is a good time to buy as well as market your property and be noticed,” says Geoff Barnett.

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