Property market now favours sellers
The property market has returned to being a sellers' market after four years of favouring buyers, according to a fresh survey of real estate agents.
The monthly BNZ-Real Estate Institute of New Zealand residential market survey said both investors and first home buyers were showing renewed interest in residential property.
A record net 27 per cent of agents noticed more investors in the market last month, up from 19 per cent last month and just 4 per cent a year ago.
Interest from first home buyers was also strong, with a net 41 per cent of agents reporting more contact with those seeking their first step on the property ladder.
BNZ chief economist Tony Alexander said the appearance of the extra buyers suggested buyers were now more motivated than sellers, he said.
''For the first time since our survey started we feel one can say with strong confidence that the New Zealand market has shifted toward being a sellers' market rather than the buyers' market which has been more the norm for the past four years,'' he said in the survey commentary.
Earlier this week, Alexander suggested that low returns for term deposit and interest rate uncertainty were prompting would-be house buyers to look at the property market afresh.
However, while more people were looking, there was no sign yet of a pick-up in buyers, the survey showed.
Fewer agents reported an increase in people going through open homes, a net 13 per cent compared to 21 per cent in May.
Requests for appraisals from those wanting to sell a property were also static, underlining the perception that sellers were not rushing to come to the market.
After sharply increasing in May, the number of agents who felt property prices were rising had retreated to a more usual 24 per cent.
- © Fairfax NZ News