More section sales and staff during September

More section sales and staff during September

First National’s real estate office monthly survey for September shows a continuation of the market’s slow recovery that began in February.

Activity levels continue to grow slowly as the market inches its way out of the doldrums. Increases in section sales and people entering the industry were of note.

Key market activity indicators measured by First National monthly across its 70 offices include open home attendance, website property views, buyer enquiry, number of contracts signed, listing levels.

First National Group general manager John Stewart said a small but noticeable shift in the workforce occurred over the past three months as new salespeople have begun trickling back into the industry.

“The number of salespeople in our network has grown by 7% over the past three months to the end of September. Although a small increase, it is a significant reversal of the trend of the past 12-18 months where many real estate groups saw offices close and salespeople leave the industry.”

Over half the offices signed the same number of contracts or more contracts than August. Web-based enquiry continues to set records and the quiet trend toward sales volume growth continues.

Also of note last month was the lift in interest in sections, Stewart said.

“Last month Nelson, Christchurch, Wanaka and parts of the Bay of Plenty showed promise in section sales after a long drought. During September we can see this trend is gradually becoming more widespread and will impact on the sale of existing property as people commence the building process of their new homes.”

On a regional basis, Southland, Central Otago, Nelson/Marlborough, Northland and Taranaki reported the biggest increases in market activity.

Auckland offices reported lower activity levels than other regions for September and the West Coast of the South Island also had a quieter month after a busy winter period.

Listing levels in many areas were still below expectation. However, agents in areas of no listing shortage (the Bay of Plenty, Northland, Alexandra, Taumaranui, Johnsonville) noted sellers influenced by reports of shortages had price expectations which were not realistic.

“For those who have listed well presented properties, this is a real opportunity to leverage top dollar at the moment,” Stewart said.

“However, if buyers continue to outstrip good quality listings, the marketplace will become skewed as competition for those properties gets even more intense.”

ENDS

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