Survey reveals steady results amidst global ructions
A joint survey released by REINZ and Tony Alexander (pictured above) is back again this month to reveal the views of licensed real estate agents regarding the conditions in the residential property market – from how activity levels are changing and the views of first-home buyers and investors to the factors which are affecting sentiment of those two large groups.
According to the latest REINZ & Tony Alexander Real Estate Survey, a net 19% of 512 real estate agents reported fewer people showing up at auctions, which meant people who do go to auctions were not facing much competition in the room; while a net 5% of agents reported fewer people were attending open homes, indicating that “the extent of tyre kicking by potential buyers remains muted” at the moment.
A net 59% of agents throughout New Zealand said prices continued to fall in their location of interest – a result consistent with nearly all others since early last year and therefore giving no hint that the pace of price decline was easing for the moment.
Findings also revealed a jump in the net proportion of agents noticing more first-home buyers in the market, from -3% in late January to 22% in late February, with the latest result statistically unchanged from 20% four weeks ago. This meant that although first-home buyers were present, there was not a swelling wave of these mainly young purchasers.
The survey also found that only 6% of agents thought buyers were displaying a fear of missing out (FOMO) on making a purchase – a level far removed from the 50% to 92% recorded when prices were rising rapidly and turnover was high.
The agents also noticed no sign of investors being active in New Zealand’s residential real estate market as well as very little offshore interest in New Zealand’s housing market. There was, however, a lift in buying by migrants into the country. A net 41% of agents this month reported seeing fewer offshore buyers.
On the bright side, requests for appraisals of properties continue to increase, as shown by the net 7% positive reading for this appraisal request measure. This was the weakest outcome since July last year, however, indicating that there was no rush of property being placed on the market by owners.
Rising interest rates, prices falling after buying, and accessing financing continued to be the main concern of buyers, the agents reported. Hopes of finding a bargain, meanwhile, continued to be the main motivation of investors who were thinking about buying a property. Interestingly, investing for retirement has been trending downward, which might reflect the increasing complexities involved in running an investment property and the ever-rising costs involved as flexibility to freely manage one’s asset declines.
What do you think about the survey findings? We’d love to hear from you in the comments below.
