June 2009 Marketwatch is released

For the third month in a row our statistics demonstrate a market with a reduced
level of new listings coming to the market and a significantly higher number of
written sales being recorded than the same month last year.

The comparative increase in buyer activity is particularly noticeable in
those areas hardest hit by the slowdown we experienced last year, with an
average increase in the volume of written sales in May 2009 of nearly 40%
when compared to May 2008, including 43% lifts in Harcourts’ Northern and
Christchurch regions and a 76% increase in Harcourts’ Central region.

This marked improvement in the volume of written sales follows the trend in
March 2009 (30.4% increase on March 2008) and April 2009 (44% increase on
April 2008).
In terms of the figures we report there were fewer new listings last month than
in May 2008, while the average written sale price in all but one region (Northern)
was down on May 2008.

In our view attractive lending rates, positive immigration statistics and some
positive rumblings internationally have all contributed to the increased activity.
Of equal stimulus is that most sellers are now fully conversant with the realities
of the current market and are entering negotiations with realistic expectations.
Predicting what may or may not occur over coming months in the New Zealand
real estate market is a favourite national pastime, and always attracts a lot of
comment when views are publicised.

As far as Harcourts is concerned, given the fundamentals that are in play and
driving our market right now, we see no reason for today’s solid real estate
market not to continue.

As long as sellers understand the market and have realistic expectations they
can expect to achieve good results. Equally, buyers who do their homework and
enter negotiations positively and with realistic expectations too can also look
forward to securing their next property at today’s attractive levels.
Bryan Thomson, CEO, Harcourts New Zealand

Download the full report here