PHOTO: FILE
đ The Housing Market Cooldown Hits Hard
New Zealand’s real estate sector is experiencing a significant contraction, with a notable decline in the number of active agents. According to the Real Estate Authority (REA), active real estate licences have decreased from 16,902 in September 2022 to 15,460 as of April 2024, marking an 8.5% drop. â
This downturn correlates with a substantial reduction in housing market activity. The total value of residential property sales plummeted from $91 billion in the year to July 2021 to $61.2 billion in the year to April 2024âa one-third decrease. Consequently, agent commissions have also declined, dropping from approximately $1.82 billion to $1.22 billion over the same period.â
đŒ Agents Seek Stability Elsewhere
The challenging market conditions have prompted many agents to reconsider their careers. Some are transitioning to full-time employment in other sectors while maintaining their real estate licences in a suspended state, allowing for a potential return when the market improves. âProperty Noise
đź Looking Ahead
As the housing market continues to adjust, the real estate industry may see further consolidation. Agents who adapt to the evolving landscape and maintain high standards of conduct will be better positioned to succeed in the long term.
Real Estate Agent Numbers vs Housing Market Trends (2021â2024)
| Year | Active Agents (REA) | Total Residential Sales Value (NZD) | Estimated Commission (NZD) |
|---|---|---|---|
| 2021 (July) | ~16,900 | $91 billion | $1.82 billion |
| 2022 | 16,902 | $82 billion | $1.64 billion |
| 2023 | 15,700 | $70 billion | $1.4 billion |
| 2024 (Apr) | 15,460 | $61.2 billion | $1.22 billion |