Low Winter Listings Could Put a Spring Back in the Market
A drop in property sales and house listings during the last month of winter points to a slower housing market, however, there are still plenty of opportunities for buyers and sellers to make the most of market conditions.
REINZ reports nationwide a 6.1% drop in sales and 3,624 fewer properties on the market during August, compared to the same time last year. These figures follow the lowest number of new listings of any consecutive three months since records began in 2007..
“Spring is usually our busiest time of year and there are signs more properties will be on the market. Recent reductions in the Official Cash Rate (OCR) and relaxation of deposit requirements opens the door to more first home buyers, who don’t need to sell a property before purchasing. With fewer homes available to buy, they could drive purchases between now and the end of the year.”
Joe Wilkes, a property expert advising Tall Poppy, says it’s important to look at how the regions respond to changes happening in Auckland.
“When comparing sales volumes in August 2015 (the peak year for volume of sales) to August 2019, Auckland has seen a fairly significant drop-off in the number of transactions. This is particularly noticeable at the upper end of the market. It was anticipated this would happen - but what will be interesting to see is whether it impacts the amount of money flowing to the regions, so far, they’ve remained fairly insulated. How buyers and sellers respond during spring will be a good indication of things to come.
“The cut in the OCR will have surprised some but could signal a period of opportunity. If you’re in the market, a relationship with a knowledgeable agent will be vital to making the most of current conditions,” says Joe Wilkes.