Ray White Now New Zealand - October Edition - Page 20

Several factors drive real estate markets ; 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 , conditions are favourable for sellers . Conversely , when supply is high and demand is low , conditions are favourable for buyers .
Throughout August , we saw 889 ‘ new listings ’ come onto the market , a 48.7 per cent decrease compared to the same period last year . The decrease in ‘ new listings ’ has been met with an increased number of sales 1,101 , meaning we oversold our portfolio in August by 212 . Our members are selling more than they are listing , which impacts the total available listing supply , which is currently 20.84 per cent less than this time last year and 24.24 per cent less than the same period two years ago . With a total of 2,837 listings on the market in August for buyers to choose from , these stock levels continue to favour our sellers .
Our strong volume of buyer demand is clearly continuing to drive our results . Across all of our metrics , September demand was up . The initial buyer metric we take into consideration is the number of buyers viewing properties online . Throughout September , we saw 4.433 million views across our Ray White websites . This is 7.05 per cent higher than this time last year and resulted in over 57,842 enquiries , a volume that is 19.35 per cent higher than September last year . The demand hasn ’ t stopped at online activity . Across our auctions in September , we recorded an average of 5.9 registered bidders per auction . Of these bidders , an average of 4.5 were actively bidding ( refer to page 21 ) with an auction day clearance rate of 84.4 per cent . The final consideration we look at when measuring the volume of demand in the market , and arguably the most significant , is the number of people obtaining pre-approval for finance . Pre-approvals are a key leading indicator to buyer confidence , knowing they have the financial capacity to buy the property . Our partners at Loan Market are seeing record numbers of pre-approvals across the country , with 56.85 per cent more than this time last year ( refer to page 22 ).
As we continue to see strong numbers across these buyer metrics , we often ask ourselves why ?