Tony Alexander, BNZ Chief Economist has published the BNZ-REINZ Residential Market Survey results for September this morning.
Some key excerpts are below:
Market Moving Upward
All of the main eight measures we use to gauge the current strength of the residential real estate market around New Zealand have strengthened over the past month indicating that slowly but surely on average things are shifting to a sellers market. More and more first home buyers are appearing, prices are perceived to be edging upward, and auction clearance rates are considered to be improving. However there has been a sizeable lift in potential vendors seeking appraisals of their properties, and in the opinion of agents the market balance is only marginally in favour of sellers. Regional variations remain strong.
Buyers More Committed
Fewer and fewer buyers are backing out of their contracts meaning that even if attending Open Homes could be classified as simply window shopping, and even if signing offers does not necessarily clinch the
deal, more and more buyers are seeing the process through to the end.
Many More Vendors Appearing
This measure has undergone a substantial change this month with a high net 31% of agents reporting that more potential vendors are coming forward and seeking appraisals.
Important Note: This would indicate that there could be a shift in supply vs demand dynamics very soon.
What are the Main Reasons Written Sales Fail to go Unconditional?
Finance 35.6%
LIM report 5.9%
Builders report 46.6%
Note: Finance has dropped from the past months showing more finance being available. Building reports are still up close to 50% of failed agreements, showing the need to obtain a builders report before taking the property to the market.
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