Harcourts' National Overview

National overview

As election day nears, sales are down across the country by 18%.

Harcourts CEO Chris kennedy says it’s a time when many New Zealanders hold off on making important financial decisions, to see the lay of the land after election night.

“At Harcourts we traditionally see a dip in the number of new listings and sales in the weeks leading up to an election, as much as 20%. And then when the results are known and people are feeling secure again, listings return to their pre-election levels.

“To a lesser extent, the same phenomenon occurs in winter. People believe it’s a smart move to wait until the spring before selling and, resultantly, sales drop because there is less choice on the market.”

However, Kennedy says it is inarguable that the property market has dropped from the heights of 2015/16.

There are many reasons for an overall drop in sales. Investment has fallen off due to the Inland Revenue Department’s introduction of the bright-line rule, the Reserve Bank’s loan to value ratio restrictions, and foreign investors facing a more difficult task in transferring money out of their countries.

The good news is regardless of what happens during the election, our economy is thriving and business confidence is high. This is not going to change overnight.

“So, yes the property market has changed. Real estate goes through cycles and this is totally normal.

“Things have slowed, but that doesn’t mean there is going to be a crash. Just an adjustment in sales levels, prices and expectations.”

National_Market_Watch_July_2017.pdf

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