Vendors Urged to List as Buyer Numbers Increase
Increased numbers of New Zealanders are walking into open houses, indicating a surge in confidence within the country’s property market.
Yet in July, new property listings reached an all-time low, with a substantial 12.4% decrease in stock compared to the previous year, according to a report in realestate.co.nz.
Vanessa Williams, the spokesperson for real estate.co.nz, said, “We are hearing from real estate agents that stabilising prices have increased buyer interest, and our data supports this.”
Last month, the New Zealand market witnessed a modest influx of only 6,156 new listings, approximately half the volume recorded in 2007 when realestate.co.nz started keeping records. Additionally, the number of available properties decreased in 10 out of 19 regions compared to the previous year. As a result, the total count of homes for sale across the country in July amounted to just 23,090.
Nationally, prices have been stable since the beginning of 2023, sitting around $870,000. Vanessa says increased certainty around price can appeal to buyers and sellers alike.
“The OCR remaining flat last month, for the first time since August 2021, may have also given Kiwis some comfort given the current climate. Although I will add that, since this announcement, banks have increased retail lending rates to around 7.0%.”
There is an increase in properties being sold through auctions, and data indicates that vendors are increasingly opting to return to auction rooms nationwide. In the previous month, 22.1% of all listings were put up for sale through auctions, marking a notable rise from the 15.3% recorded in July 2022.
Keith Niederer, the General Manager NZ, Raine & Horne, highlights three key benefits of taking your home to auction.
“Auctions foster a competitive atmosphere where potential buyers emotionally connect with the property in a short period of time, which can lead to an increased value of the home, potentially resulting in a premium sale price,” Keith explained.
Auctions provide a definitive end date for the sale process, creating a sense of urgency among prospective buyers. Keith explains. “This deadline encourages potential purchasers to be organised and prepared for the auction day, which may lead to a sale either before, during, or after the auction.
“Auctions can also draw in a larger pool of potential buyers during open inspections, and the competitive nature of the auction may encourage more bidders to register. Interested buyers may be more motivated to secure the property in a competitive environment.”
Keith added, “By considering these benefits, property owners can make informed decisions about whether an auction is the right method for selling their property.”