Warns More Than Meets the Eye With Propery Stats
Harcourts CEO Warns More Than Meets the Eye With Property Statistics
For Release: 20 September 2006
Despite the increased number of property listings available throughout the country, Harcourts New Zealand CEO, Bryan Thomson suggests there is more to these statistics than meets the eye. Commenting in the latest issue of Harcourts’ monthly MarketWatch newsletter overviewing Harcourts’ August 2006 business activity, Mr Thomson added “With an increase in the ‘property on hand’ figure nationwide compared with the same time last year, some would suggest buyers have plenty of choice.”
“What the higher ‘property on hand’ statistic doesn’t show is that compared with August 2005, this August saw a lower level of new property coming onto the market. A shortage of new listings throughout the country combined with continued strong buyer activity meant buyers are still under significant pressure to not only find their new property but also secure it ahead of other buyers,” Mr Thomson said.
He added it was important for sellers to also understand the implications of the statistics. “Buyer activity is maximized during the crucial first three or four weeks a property is placed on the market. If a property comes to the end of this period and hasn’t sold, the buyers are sending a clear message that the seller’s price expectation is in excess of the market. The only other reason for no activity is that the marketing programme is insufficient to attract buyers, ie, no one knows it is for sale.”
Mr Thomson said, “With stock levels well above this time last year sellers must take action to ensure their property doesn’t languish during the crucial September to December prime Spring selling season. Getting back in front of buyers is not difficult. Any issue can often be quickly and easily rectified but sitting and waiting won’t help.” Looking forward, Mr Thomson noted the beginning of Spring had seen an increase in new listings in the South Island provincial region, predicting other parts of the country would follow in line with traditional Spring activity.