A lingering problem
There has been a huge increase in the amount of property lingering on the market, according to the latest Harcourts newsletter.
Wednesday, July 23rd 2008, 10:51AM
by The Landlord
Bryan Thomson, Harcourts chief executive says the company’s volume of sales transactions is well down on the same period last year, particularly in Auckland, so the amount of property on the market is rising – even given the lack of new property coming forward this winter.
He also believes buyers should seize these opportunities.
The latest Harcourts newsletter shows the northern region – Auckland north –recorded a 60% increase in the number of properties the company has for sale. In July last year there were 1,739 properties on hand compared to 2,774 today. The situation is even more pronounced in the Christchurch area where 63% more property is available than last year –from 2,372 properties in 2007 to 3,863 in 2008. It’s almost as bad in Wellington with a 56% leap from 1,774 last year to 2,725 today. And in the Central North Island there are 22% more properties – 2,266 last year and 2,761 today.
Thomson says canny sellers with realistic price expectations should get in before the traditional spring flush when a flood of new properties brings more competition. He says in the current market, smart buyers are maximising their chances of success by making strong cash offers. This perhaps explains why Harcourts has seen an increase in the number of people using the auction method to sell. Thomson explains that using aggressive marketing to generate interest in the critical first three weeks of the campaign is proving a key to success.
Interestingly, Harcourts figures also show a substantial rise in the average price achieved for properties in all except for the northern and Christchurch regions. The biggest increase was in Wellington where the average price leapt from $331,000 last year to $460,000 this year.
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