Lowest Month of Reported Sales
What happened during January? Not a lot actually, if the reported residential sales are accurate. January 2010 saw the lowest number of house sales in Gisborne NZ for quite some time. Why? I have a few thoughts on the matter. Firstly the market we are currently in here in Gisborne is not running hot. Sales over the past 6 months have been low and while we we hit 40 plus in December 2009, that was the exception, not the rule. Investor confidence understandably has been at a low point, but that will change. Economic uncertainty – business confidence, unemployment and general caution have all factored to the drop in sales volumes.
Secondly most agents took a break. You could argue they do that every year and the sales didn’t drop as much then. But looking at the numbers – high in December – meant a lot of stock was cleared out and may not have been replaced prior to Christmas. Agents took a break, came back to work, not a lot in the market, fewer sales. If February sales are up, then this may prove to be true. Remember too, sellers and buyers go on holiday also.
Thirdly, some agencies may not have submitted their stats. With the change in the industry’s laws and regulations it is no longer compulsory for agencies to belong to the REINZ. It is possible that some agencies have elected not to forward their statistics.
So what does it all mean for the players? For Sellers, it means they are in competition with other home owners who are wanting to get the buyer under contract . Sellers need to be sure their property is an attractive proposition, either in features offered, presentation or most importantly, it is competitively priced. Sellers are never in isolation, with just their property on the market, but rather they are in competition with other home owners.
For Buyers, this market signals real opportunity. In any market there are always genuine sellers willing to meet the market, who need to sell. With the low level of competition from other buyers who are apparently not committing, this is a great time to make your move.
I thinks we’ll see a lift in February’s activity.
