Buyer inquiry has increased and some houses have sold within ... weeks of going on the market
In February, I wrote of the increased activity in the residential market and predicted the February sales should be "about 60". I was delighted there were 66 house sales, which compared favourably with the
February sales for last year of 69 and for 2009 of 63.
The market has continued to be active and sales for this month should be in the mid 70s. I note last year's March sales were 72 and, in 2009, they were 80.
In recent weeks, buyer inquiry has increased and some houses have sold within one or two weeks of going on the market
So who is buying? Most sales seem to be created within Rotorua with very few out-of-town buyers. We have examples of vendors downsizing their homes, some upgrading and we now have a number of investors back in the market and buying.
There appears to be more confidence out there and, with the recent drop in interest rates, homes are becoming more affordable and attractive.
Another interesting factor is the large number of houses in Rotorua that have been rented out until values rose again. Some of these owners are now looking at putting them back on the market.
This will increase the pool of good, available properties for sale and will, hopefully, encourage more sales.
To finish, just a quick update on the real estate scene in Christchurch. Because the major insurance companies will not give insurance cover, it is almost impossible to sell a home - even if it has not been damaged or affected - and real estate activity is practically nil.
I understand 14 real estate companies have closed and more than 80 salespeople have left the industry - a very sobering thought.
- Ian McDowell is the Rotorua spokesman for the Real Estate Institute of New Zealand and principal at McDowell Professionals Real Estate
