The latest BNZ/REINZ residential market survey has shown sellers' markets and rising prices throughout the country – except in Northland.
By Susan Edmunds
BNZ chief economist Tony Alexander said that a lack of inventory was pushing prices up particularly in Auckland, Canterbury and Otago. “Only in Northland does there appear to be a wave of potential sellers appearing whereas in Auckland and again in Otago few potential vendors appear to be stepping forward.”
In Northland, a net 36% of agents were seeing more requests for appraisals, while in Otago appraisal requests were rare.
Bay of Plenty and Wanganui/Manawatu were also classified as buyers' markets by the survey but only agents in Northland reported that prices were still falling,
Alexander said the residential real estate market would likely be strong through 2013 at least, because of low interest rates, indications that migration might be turning around and the renewed interest of investors in the sector.
The monthly survey of real estate agents showed that a record net 20% of the 485 agents who responded felt it was a sellers’ market. A net 42% are seeing more first-home buyers, and a net 21% more investors looking to purchase property.
Only slightly more agents than in July said there were more new buyers coming into the market, the rate of sales going unconditional was firm, and a continuing high number of agents reported good success rates at auction.
A net 40% of agents thought prices were increasing and 20% thought buyers were more motivated than sellers, although the main thing holding them back was a lack of supply in the market.
But the report showed that was unlikely to change quickly in most parts of the country – only a net 2% of agents reported an increase in requests for appraisals.