Crowds of viewers flock to open homes

They call it the wisdom of crowds - and right now, estate agents are being trampled by the biggest open home crowds they have seen in years.

One agent had more than 60 viewers through an open home in Auckland's Herne Bay in just 30 minutes.

If the crowds really are as wise as pundits would have it, then the property market may be ready to end its freefall.

But others fear that it is less an example of wisdom than of a mob mentality, rushing to lynch those poor home-owners who have been forced to sell while the market is low.

Some agents put the open home phenomenon down to buyers looking for a bargain in a market lacking in quality homes; others see it as a return to the market for people wanting to upgrade.

Figures from the Real Estate Institute of New Zealand show the median house price dropped from $340,000 in January 2008 to $325,000 at the start of 2009. The number of homes sold also significantly dropped, with just 3706 sales last month compared with 5186 in January 2008.

To read the full NZ Herald article click here

Posted: 22 Feb 2009

News articles