Survey reflects strong property market

Thursday 14 February 2013

New Zealand’s property market is buzzing, according to the first BNZ-REINZ residential market survey for the year.

By The Landlord

It shows strength in all indicators, from open home attendance to auction clearance rates.

Agents report that prices are rising strongly and the market is in favour of sellers in most regions.

A net 48% of agents said they were seeing more people through the doors of their open homes, and a net 42% report sales going unconditional, up from 27% in December.

BNZ chief economist Tony Alexander said that showed that not only were people going to open homes, but they were signing agreements and going through with them.

The survey shows that auction clearance rates are up again but the rising number of agents reporting more potential vendors inquiring about appraisals is not expected to generate any increase in supply of homes for sale.

Only in Manawatu/Wanganui  and Nelson/Marlborough/West Coast are auction clearance rates seen to be weakening.

Agents said more investors were looking to purchase but there had been a slight easing in the number of first-home buyers, although it is still at near-record numbers. Alexander said it might be that more new investors were entering the market than new first-home buyers.

A net 56% of agents said they thought prices were rising, the second-highest result on record. Buyers were seen as more motivated than sellers everywhere except Northland, Bay of Plenty and Manawatu/Wanganui.

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