Signs of a property market pick up

A rise in buyer interest has come out strongly in the latest BNZ-REINZ residential market survey, which also showed a number of positive indicators for the property market.

The latest survey had 742 responses, who reported a substantial lift in buyer interest over the past four weeks and a strong rise in the number of people going through open homes.

Thirty per cent of agents said they had noticed an increase in first home seekers but one per cent reported a decrease in interest from investors.

Fourteen per cent of agents now report that they believe prices are rising after survey results from the previous three months showed they believed they were decreasing.

Perceptions that prices are rising were strong in most parts of Auckland and Christchurch, but prices were perceived to be falling in Tauranga, New Plymouth and Invercargill.

BNZ chief economist Tony Alexander said the market isn’t leaning more toward the buyer or the seller.

Agents were split when asked whether sellers or buyers were more motivated.

Twenty three per cent of agents reported that they are noticing more people going through open homes.

This was a sizeable rise from the 10 per cent who noticed improved activity in May.

Twenty per cent noticed there were more sales going unconditional and less falling over because of factors such as builders reports or inability to sell their own home.

Auction clearance rates rising were noted by 16% of agents, after the previous two months showing clearance rates falling.

Thirty per cent of licensed real estate agents feel there are more first home buyers in the market. This is the fourth month in a row that the result had been positive, up from 19% in June.

In the May survey 7% of respondents felt prices were falling, in June a decrease was noted by 5%, while July saw 14 per cent feeling that house sale prices are rising.

The result suggests that buyers are not only going to open homes and completing offers, but capitulating on the prices vendors are asking.

The main factor stopping buyers is a perceived lack of good quality listings with 34% of agents noting this as a reason for reticence. The factor is noticeably more important that in June’s survey. Slightly fewer buyers hold back now because they feel they will not be able to sell their own house and only 23% cite an expectation of price declines as a deterent.