New Zealand Market Update

For the third month in a row Harcourts New Zealand statistics demonstrate a market with a reduced level of new listings coming to the market and a significantly higher number of written sales being recorded than the same month last year.

The comparative increase in buyer demand and activity is particularly noticeable in those areas hardest hit by the slowdown we experienced last year, with an average increase in the volume of written sales in May 2009 of nearly 40% when compared to May 2008, including 43% lifts in Harcourts’ Northern and Christchurch regions and a 76% increase in Harcourts’ Central region.

The marked improvement in the volume of written sales in May when compared with the same month the previous year follows the trend reported in March 2009 (30.4% increase on March 2008) and April 2009 (44% increase on April 2008).

In terms of listings, the figures we report show that across the country there were fewer new listings last month than in May 2009 and that the average written sale price in all but one region (Northern) was down on May 2008.

In our view attractive lending rates, positive immigration statistics and some positive rumblings internationally have all contributed to the increased activity from buyers.  Of equal stimulus to the domestic property market is that most sellers are now fully conversant with the realities of the current market and are entering negotiations with realistic expectations.

Predicting what may or may not occur over coming months in the New Zealand real estate market is a favourite national pastime, and always attracts a lot of comment when views are publicised.

As far as Harcourts is concerned, given the fundamentals that are in play and driving our market right now, we see no reason for today’s solid real estate market not to continue.

As long as sellers understand the market conditions and have realistic expectations they can expect to achieve good results.  Equally, buyers who do their homework and enter negotiations positively and with realistic expectations too can also look forward to securing their next property at today’s attractive levels.