Agents feel effect of market in doldrums

The volume of unsold houses in the country's northern region is rapidly rising and prices are taking a hammering.

Harcourts, New Zealand's biggest real estate chain with 180 offices, yesterday released figures that showed just how poorly the residential market is performing. The northern region, which takes in Auckland, is really feeling the pinch, suffering from declining prices and sale volumes.

Agents operating in the region had a 69 per cent increase in property on hand between October last year and last month.

Average sale prices dropped 11 per cent, from $512,000 to $455,000.

Exclusive listings dropped 19 per cent from 595 listings to 485 but those picking auctions or tenders rose 31 per cent, from 133 listings to 174.

The number of written sales dropped 40 per cent from 432 to 260.

"Activity statistics reflect a very slow month, significantly behind October last year," Harcourts said in its MarketWatch publication, out yesterday.

Bryan Thomson, Harcourt's chief executive, remained optimistic about the trend for the next few months.

To read the full NZ Herald article click here

Posted: 21 Nov 2008

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