Harcourts reports slow May, but predicts upswing

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Harcourts reports slow May, but predicts upswing

15 June 2010:  Pre-Budget uncertainty continued to take its toll on the volume of property sales in May, but anecdotal feedback about June suggests a more normal level of activity this month, says Bryan Thomson, Harcourts Head of Real Estate Operations - Australasia.

The latest figures released by Harcourts New Zealand, the country’s largest real estate group, show considerable inaction in the property market continued in May, with the volume of written sales down on the same month last year in four of Harcourts’ five regions.

“Only our Northern region figures seem to defy the trend, however significant growth by our group in this region means our statistics reflect Harcourts’ offices achieving a bigger share of a smaller market, rather than this area bucking the national trend,” Mr Thomson says in the latest Harcourts MarketWatch newsletter. 

He blames the inaction on pre-Budget uncertainty in the minds of both buyers and sellers.

“Now the Budget is fact and the changes are not as dramatic as some were originally predicting we would expect to see sales levels increase to more historically ‘normal’ levels over the coming months, especially once Spring sunshine replaces Winter cold and moisture,” he says.

“Certainly initial feedback on June indicates sales this month will be more in line with what we’d typically expect for this time of year.”

Mr Thomson also says that despite the volume of written sales being down, there is positive news when it comes to average prices, which appear to be holding up well.

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