Ray White Now New Zealand 29.6.2020 Version 6 - 29 June 2020 - Page 8

Why are we seeing strong sales results now? There is no single factor which provides the basic elements of why sales results continue to remain strong. There are however two basic fundamentals of supply, being the number of properties available for sale and the demand which is the number of active buyers in the marketplace, that still plays a significant role in establishing market conditions that remain favourable for sellers and giving buyers the confidence to purchase. Our clients that have come to market in recent weeks have achieved largely great results because of the basics of supply and demand. While the number of new listings has increased in June this could be due to a number of reasons that gives sellers confidence - the increased demand currently in the market that have still not been satisfied, together with the sustained auction clearance rates across the country. However, our strong suspicion is that there has been a return of confidence in the market. In the month of June, we have seen a major change in the market dynamics from a national perspective. In terms of total listings on the market at the moment, we are marginally above where we were last year. So while there is more supply than in the past few years, the buyer pool is deep. There are a number of considerations we take into account when looking at the amount of buyers active in the market. Listing authorities This chart illustrates the reduced number of new listings that is currently coming onto the market up to 29 June 2020. 3,000 # Listing Authorities / 28 days 2,500 2,000 1,500 1,000 500 Jan Feb Mar Apr May Jun Jul 2018-19 2019-20 8 Source: Ray White Listings Data