New Zealand real estate’s days of fast sales and sky-high prices have been replaced by realism and steady growth, says real estate boss
The New Zealand real estate market has undeniably slowed but conditions now offer more stable and sustainable conditions according to the national manager of real estate agency Century 21.
Geoff Barnett says that the impact on the market of investors and speculators has been curtailed by the Reserve Bank and Inland Revenue in a measured way and crucially, homeowners’ equity has not been compromised.
“Last year some pundits were predicting doom and gloom, but overall the market continues to truck along better than even us optimists were forecasting,” Barnett commented. “Yes, Auckland has levelled out and is more of a buyers’ market now. However, in saying that Auckland has merely normalised with the market now showing more realism and genuine sustainability.”
Barnett added that the policies and plans that have been introduced have given the housing market a soft landing and avoided the boom and bust scenario which would have been painful.
That’s not to say there are not challenges for the industry. Some real estate professionals have only known a sellers’ market and are having to adapt to times without fast sales and crazy prices, like those seen in Auckland last year.
“It’s no longer just about loading the property onto the internet and naming your price. Vendors are now really doing their due diligence on an agent’s ability to market, negotiate, and sell,” said Barnett.
As for the months ahead, Barnett forecasts more strength but with headwinds later in the year including the election and the likelihood of higher interest rates.
Geoff Barnett says that the impact on the market of investors and speculators has been curtailed by the Reserve Bank and Inland Revenue in a measured way and crucially, homeowners’ equity has not been compromised.
“Last year some pundits were predicting doom and gloom, but overall the market continues to truck along better than even us optimists were forecasting,” Barnett commented. “Yes, Auckland has levelled out and is more of a buyers’ market now. However, in saying that Auckland has merely normalised with the market now showing more realism and genuine sustainability.”
Barnett added that the policies and plans that have been introduced have given the housing market a soft landing and avoided the boom and bust scenario which would have been painful.
That’s not to say there are not challenges for the industry. Some real estate professionals have only known a sellers’ market and are having to adapt to times without fast sales and crazy prices, like those seen in Auckland last year.
“It’s no longer just about loading the property onto the internet and naming your price. Vendors are now really doing their due diligence on an agent’s ability to market, negotiate, and sell,” said Barnett.
As for the months ahead, Barnett forecasts more strength but with headwinds later in the year including the election and the likelihood of higher interest rates.
