Ray White Now New Zealand 19.10.2020 Version 22 - 19 October 2020 - Page 10
WHY ARE WE SEEING STRONG SALES RESULTS NOW ?
Real estate markets are driven by a number of factors ; however the two basic fundamentals of supply ( the number of total properties for sale ) and demand ( the number of buyers active in the marketplace ) play a significant role in establishing market conditions that favour sellers or buyers . In general terms , when supply is low and demand is high these conditions are favourable for our sellers . Conversely , when supply is high and demand is low these conditions are favourable for buyers .
Demand Demand continues to outweigh supply . When looking at the number of potential buyers in the market there are several considerations we take into account . The number of buyers looking online for property , the number of buyers who enquire on properties for sale , the bidding activity we see each week across our auctions and also the number of people actively gaining pre-approval for finance to purchase a property .
So what are we seeing now ?
Supply We are well into October and the election is behind us . We would expect to see an increase in the number of new listings and certainty in the market . If you look at the numbers that are occurring each week , while the supplyside still remains strong in comparison to this time last year being up 8.7 per cent , this is not enough to service the demand level that is evident on a continued basis , with the sales volume lifting by 38 per cent on the same time last year .
So what factors are continuing to create confidence in the market ? The long-term forecast of low interest rates and affordability around the purchasing of property .
The number of first home buyers coming into the market is increasing significantly as they take their opportunity to purchase at interest rates that are the lowest on record starting from 1.99 per cent .
Consumers with additional cash due to the lack of international travel and some uplift from returning expats are also giving momentum to the market .
Live listings This chart illustrates the number of live listings that are currently on the market up to 19 October 2020 .