REINZ & Tony Alexander Survey: Strong Market Continues
Conditions remain very strong in the residential real estate market all around the country, with all measures of demand and price pressure in our survey rising over the month – as most did also in early-October. A net 47% of the 381 agents completing the survey said that more people are attending auctions, and a net 59% are seeing more people attending Open Homes.
Unsurprisingly, with buyer interest so strong, a net 97% of agents report that in their area prices are rising while a net 88% say buyers are gripped by FOMO – fear of missing out.
The key change over the past month has been a rise in the proportion of agents reporting that they are seeing more investors, to a net 59% from 38% in our October survey.
Is there hope for the increasing number of frustrated buyers? A net 32% of agents report that they are receiving more requests for property appraisals with a view to selling. So, new listings numbers look like they will continue to rise. However, a net 15% of agents say that they are seeing fewer investors selling. When asked what is motivating investors to buy, 83% cite interest rate levels, but a far lower 27% cite expectations of price rises.
Of relevance for the market’s ability to keep rising, and perhaps wider consumer spending growth heading into Christmas and the New Year, is the continuing decline in reports of job worries. Only 16% of agents report that buyers are concerned about their job and income prospects. In our first survey in June this gross proportion was much higher at 48%. The strength of the labour market is one of the large number of factors helping to underpin housing markets all around New Zealand.