Shortage may lead to property price increases

Media Release
Shortage of stock forecast to lead to property price increases

1 September 2009: A shortage of new residential property listings as we move into the traditionally busy spring has led industry professionals to forecast demand will push up house prices in New Zealand and Australia, according to Harcourts International Managing Director Mike Green.

“Over the last couple of months a number of indicators and much commentary has pointed to the start of the recovery of the New Zealand and Australian economies, and this has caused a lift in confidence across many sectors including the housing market,” Mr Green says.

“In response, as Harcourts’ Sales Consultants on both sides of the Tasman have been reporting, the lull in the property market has well and truly ended and there has been an increase in activity among buyers across all price brackets over recent months.”

However, there is some concern among industry professionals that the level of demand from buyers will push up prices in New Zealand and Australia unless some more stock comes onto the market during spring – which according to historical trends is traditionally a busy selling time and sees a higher level of housing stock coming forward for sale, Mr Green says.

“Many would-be sellers were advised six months to a year ago that they should hold onto their homes and ride out the global financial crisis if they could, to avoid receiving a lower price or having their property sit on the market for months with very little interest,” he says.

“Rather quickly the situation has changed and the fewer properties that are on the market are often receiving multiple offers, with some selling over the asking price. Auctions are also achieving great success in many marketplaces.”

Mr Green says sellers should seize the opportunity to list their property before more stock comes onto the market and balances out the situation once more.

Harcourts is New Zealand’s largest and Australia’s fastest growing real estate group. Founded in New Zealand in 1888, the operation expanded into Australia in 1997 and now has more than 600 offices in nine countries. Harcourts is also the exclusive South Pacific member of Leading Real Estate Companies of the World™, the world’s largest real estate network with more than 5000 offices and 150,000 sales consultants operating in 35 countries.

Mr Green says Harcourts has four key factors which have contributed greatly to its ongoing success: the strength of the Harcourts brand; superior business and information systems; proven marketing tools and strategies plus incredibly talented, skilled and committed people.

ENDS

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