PHOTO: Property auction. FILE

The slowdown in the property market is seeing fewer homes go under the hammer.

Fergs Coffee

Figures from realestate.co.nz show auction listings had fallen by more than a third on a year ago, while listings with displayed prices had jumped by close to a quarter.

Realestate.co.nz chief executive Sarah Wood said auctions were popular when there was strong competition for houses, as they allowed sellers to get a quick unconditional cash offer for the property.

But Wood said sentiment was changing.

Methods of sale on realestate.co.nz graph

Methods of sale on realestate.co.nz Photo: Supplied / realestate.co.nz

“I would say we’re coming off an unprecedented market in terms of really high demand,” Wood said.

Recent reports from CoreLogic and Quotable Value have shown that house prices are coming under pressure from rising interest rates, tighter lending criteria and a shift in buying behaviour from fear of missing out, to fear of over paying.

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“We’re also seeing 77 percent more properties on the market in May this year, versus last year and that gap between the number of buyers and the number of buyers is coming closer together,” Wood said.

It took some urgency out of the market and allowed people to have more time as they looked at what options were going to suit them, she said.

“Property is a two-sided transaction so those who are usually selling are looking to buy as well, so it actually works for sellers and buyers.”

Wood said people looking to sell need to make sure they understood the characteristics of their property to determine what sales strategy worked best.

READ MORE VIA RNZ

 

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