Harcourts’ August figures show spring came early to much of the New Zealand real estate market, especially in our Northern region which includes the country’s largest city, Auckland.
According to our final, audited figures for August 2009 Harcourts’ sales consultants completed a national average of approximately 47% more written sales last month than in August 2008, with a total of 2030 written sales making it the second highest amount since November 2007.
The largest increase occurred in Harcourts’ Northern region where the volume of written sales last month was a significant 78% ahead of August 2008. In addition the average sale price was 11% ahead of the same month last year.
In three of Harcourts’ other regions there was also an increase in written sales last month when compared with August 2008, with our South Island Provincial region being the only exception.
Meanwhile, more properties came onto the market last month than in August 2008 but the total volume of property on hand remains limited and in some regions the slow rural market is continuing to impact on average sale prices.
While confidence in the market appears to have returned we have to be mindful of the fact that the numbers we are seeing this year are being compared to the historically low numbers of 2008. If you look further back in time our national sales numbers remain 25% below the peak of August 2005.
So, while the market is more positive and active and the lower number of listings we have seen over winter has created competition and helped to stabilise prices in many locations it’s too soon to be talking about another “housing market boom”.
Notwithstanding that, serious buyers are taking action now while asking prices and mortgage interest rates are more attractive and smart sellers are seizing the opportunity to list their property before more stock comes onto the market and balances out the current situation.
A full breakdown of regional statistics for our group is available on the Harcourts Newsroom.
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Why Do you think there is a buy up of property lately. What factors have changed the most to make people act now or is it a case of a little bit of everything making people act.
Pretty simple really as the property market often is! There was, and still is, a bank of buyers and sellers who held off making decisions in regard to property transactions during the dark days of 2008. Since late February 2009 the community has realized, on the back of more positive signals regarding the economy, that the sun is still coming up, life is going on and significantly interest rates have lowered as have property prices. All these factors, coupled with positive immigration numbers have boosted confidence and confidence is the fuel of major decisions making. Add to this the lower than normal number of new property listings coming to the market over winter and in many locations this excess of demand over supply has generated a positive market, made appear to be all the more so by being compared continuously in the media against the historically low levels of activity of 2008.
I think it has something to do with supply and demand that’s why the housing market is up.