MARKET CORRECTION: Kiwi house sellers start to adjust their sights

PHOTO: House prices are starting to drop. FILE

“With summer drawn to a close, more and more vendors are coming to the party, keen to do a mutually satisfactory deal,” says Tim Kearins, Owner of Century 21 New Zealand.

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His comments follow industry observations that a buyer standoff contributed to the lowest number of sales for the month of January for some time.

“Buyers have stood back, but now that we’re into autumn vendors seem more prepared to negotiate a good outcome. They’re keen to sell while sales prices remain strong and before the onset of winter and obvious market uncertainty,” says Mr Kearins.

The Century 21 leader said while listings industry-wide were very low at the start of summer, they started lifting from January which will see a lot of sales activity move out to March and April.

“Many houses are taking a little longer to sell, but increasingly vendors understand they don’t want to be the one with the faded ‘for sale’ sign. That doesn’t do a property any good, so many are working with the enquiries they’re getting which is seeing some good results achieved,” he says.

Mr Kearins says vendors are also waking up to the fact that lending rules have got a lot tougher, with pre-approved finance harder to achieve.

All eyes will be on REINZ’s latest February sales statistics out soon, with the Reserve Bank lifting the Official Cash Rate last month for the third consecutive time since October last year.

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“Interest rates remain relatively low and both buyers and sellers realise this. Buyers are keen to act and lock in low, while vendors want to secure a sale while good rates and finance remain available,” he says.

He says Century 21 agents have been reporting more activity in February and March, with good properties still in strong demand. The fact that most districts, towns, and cities are still light on listings is limiting choice but importantly helping to keep prices up.

“What’s more, with more ex-pats now coming back into the country without having to quarantine we have more buyers not fewer. These are key factors that those contemplating selling need to consider,” says Tim Kearins.