For the past 5 to 6 years we’ve experienced arguably the best period of sustained growth and activity in the residential property market that New Zealand has known – it couldn’t last forever! Is it now all doom and gloom? Far from it! Like all changes in the market, this market will soon find its new level. We go through this process each time there is a shift, it’s a process of adjustment.
The adjustments that are currently taking place are:
• Sellers are coming to terms with the fact that there are more properties for sale and fewer buyers. The competition to attract a buyer and secure a sale is greater now that is has been for a long time.
• Values are not increasing at the rate they were. The market is far more “price sensitive” than it was. Buyers are taking longer to make their purchasing decision, and are not afraid to walk away from the negotiating table, knowing that there are other properties to choose from.
• Enquiry and buyer activity levels have decreased. Sellers are not receiving the same levels of buyer inspections that there were, particularly in the higher price ranges. Weeks without any buyer activity can sometimes make the sellers quite despondent and sometimes agitated. Patience and persistence are requirements of the new market.
• Buyers waiting for the market to collapse so that they can buy some bargains will be disappointed. Market conditions are becoming more favourable for the buyers but a market collapse is extremely unlikely.
• More properties to select from and an increase in negotiating strength will be the real benefits to the buyers in the new market.
• Appreciating the changes that are taking place in the market, what does this mean for us and our clients?
• The majority of the Real Estate salespeople in New Zealand have never experienced this type of market place we now have. Our new market requires a different set of skills, adjustments to marketing strategies and listing/customer management. The value and effectiveness of a good salesperson will now be far more critical than it has been previously to sellers. Being more challenging to achieve a sale at the best possible price, will mean salespeople with the best skills, marketing, support, attitudes and ethics will become more sought after by genuine sellers.
• Pricing and marketing will have to be far more accurate. Buyers will want to negotiate with sellers that are realistically priced, and salespeople will need to be far more innovative with their marketing programmes.
• Constant reviewing and adjustment in this competitive market, if the buyer enquiry and activity is not happening, means you cannot afford to keep doing the same thing. Review the pricing, marketing strategy or method to ensure that the property does receive buyer attention and activity.
(Tauranga sales statistics coming soon)
