Recent slowdown in sales self-fulfilling prophecy

Media Release:

Recent slowdown in sales "self-fulfilling prophecy"

15 November 2007: With Spring 2007 dominated by discussions about the predicted slowdown in sales it seems a self-fulfilling prophecy may be occurring, particularly in Auckland, according to Harcourts New Zealand CEO Bryan Thomson.

Commenting on Harcourts' October figures, which are published in the latest issue of Harcourts MarketWatch newsletter, Mr Thomson said sales have slowed after months of "negative market chatter".

"Through the main centres we have indeed seen substantially lower numbers of sales than enjoyed previously - bringing sellers and others in the real estate industry back to reality after the historically high volumes that have become the norm over recent years," Mr Thomson said.

"Encouragingly though, available listings and average prices in all but our Northern region have continued their upward trend when compared with October 2006," he said.

"For example in our Central and Wellington regions, in Christchurch and in the rest of the South Island the number of available listings in October was between 14 and 27 percent up on the same month last year."

Mr Thomson said the simple facts are that for sellers there are still great results to be achieved, if they take the right steps - including presenting their property well and selecting the correct real estate firm and sales consultant to work with.

"For far too long, particularly while the market has been stronger, sellers have been tempted to select real estate companies and sales consultants based on who suggested the highest price or who discounted their fee the most. If that is your plan now then you are likely to face disappointment in today's environment," he said.

"Meanwhile for buyers, the risk in the current market is to let the negative chatter stop them making good buying decisions and so, instead of doing their homework and acting positively, they'll end up looking back with 20/20 hindsight vision and crying 'if only'."

ENDS

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