Property sales dive

BY RICHARD EDMONDSON

The number of houses sold in the Far North hit a six-year low last year, while sales of vacant residential sections were the lowest in 29 years.

Only 349 houses were sold in the district in 2009 compared with 432 in 2008 and a six-year-high of 1333 in 2004.

Sales of vacant land numbered 104 compared with 117 in 2008 and a 29-year high of 905 in 2004.

Property IQ research director Jonno Ingerson says real estate sales fell nationwide after the market peaked in late 2007, forcing vendors to remove properties from sale.

"Many sellers weren’t keen to realise a loss on their properties," he says.

The global recession, rising unemployment and mortgagee sales dragged the market down further in 2008.

"With bank lending criteria tight and consumer confidence low, plus the increasing costs of construction and low demand, it no longer made economic sense to buy vacant land and build on it."

The Far North’s popularity as a holiday destination also contributed to the fall in sales.

"The discretionary spend of private individuals fell away dramatically, which impacted on sales in areas that were more second home or holiday home locations."

Mr Ingerson is hopeful of a
resurgence in sales this month – traditionally a busy month for
the real estate market – but he is cautious about making predictions.

"The property market has become very difficult to predict for the last couple of years."

LJ Hooker Kaitaia says it auctions properties to boost sales which fell to a six-year-low of 38 last year after peaking at 200 in 2004.

"It’s hard work getting the buyers and the vendors to the same point. That’s why you’ve got to go outside the square and try other options," says estate agent John Barlow.

Auctions create more interest in properties and give the vendor an 80 percent chance of a sale, he says.

"Taking it to auction gives urgency and more control for vendors and forces purchasers to get their finances organised."

Mid-North Real Estate researches the market carefully before listing properties to lift house sales which numbered 28 in Kaikohe last year compared with 170 in 2006.

"We assess the property based on the sales of the day, present that information to the vendor then have a discussion about where we’re going to put it in the market," says estate agent Sue Clarkson.

She sees a slight improvement in conditions this year.

"I anticipate maybe a little rise, but it’s going to be all hard work."

- © Fairfax NZ News