Sellers' confidence leads to surge in listings

Thursday 1 October 2009

Sellers are appearing more confident the residential property market is picking up and that active buyers are returning, with the number of property listings rising 19% in September and price expectations also climbing.

Asking price expectations of vendors rose 6% in September to $419,841, as the market showed more signs of recovery, following six months of subdued price expectations, according to the latest Realestate.co.nz figures. The number of listings also grew year-on-year for the first time in 2009.

As the economy slowly recovers from the impact of the recession, it appears sellers are more confident that buyers will be active in the market and willing to meet market prices for their property.

"While we always expect an increase in both the number of listings and the price expectations during the spring/summer period, this relatively large jump on both figures is a strong indicator of improved health in the property market," Realestate.co.nz chief Alistair Helm says.

He believes the rise in available stock on the market in September could also be
"the precursor to a decrease over summer in the length of time it takes to sell a property".

The recent ANZ  Property Investment Survey also reflects residential investors' general optimism about the state of the market, including house prices and rental growth over the next five years.

However, despite figures looking particularly starry, it should be noted that they are off an extremely low base.

Khoon Goh, ANZ economist, believes the message is still to proceed with caution and be patient.

“An upswing will come at some stage. It always does. But the backdrop to a sustained recovery in the housing market is still missing at present, which suggest the current flurry of activity may not last.”

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