Trouble ahead! Auckland homes for sale set to reach an 11-year high — how can sellers stand out in a buyer’s market?

Local real estate agency Barfoot & Thompson recently said Auckland was experiencing its strongest buyer’s market since 2011. The number of properties currently for sale has jumped to a new high of 5382. Last year, new listings averaged just 1325 a month, compared with 2255 in February this year — almost double.

Barfoot & Thompson managing director Peter Thompson

Managing director Peter Thompson said: ‘There are currently more homes for sale in Auckland than at any time in the past decade. The number of homes for sale also exceeds the number of active buyers in the market. Over the past 6 months, homebuyers have enjoyed an unprecedented depth of choice.’

Weekly sales this February ranged from 156 to 280, well below the heated market of February 2021, when sales exceeded 400 in three of the four weeks. Yet the surge in properties for sale has not pushed prices down. Auckland’s average sale price was NZ$1,080,000 in January and NZ$1,100,000 in February. The market also appears to be moving in a positive direction. The Reserve Bank of New Zealand decided last week to leave the official cash rate unchanged, while ASB and ANZ have each reduced some of their home loan rates. New forecasts suggest the Reserve Bank of New Zealand is likely to cut its official cash rate earlier than expected。

Reserve Bank of New Zealand Governor Adrian Orr also offered a positive assessment in last week’s Monetary Policy Statement: over the past year, New Zealand’s economy had developed broadly in line with the Monetary Policy Committee’s expectations. Core inflation and most measures of inflation expectations had declined, and risks to the inflation outlook had become more balanced.

However, data from credit reporting company Centrix shows New Zealand borrowers faced greater financial pressure at the start of the year as mortgage and credit arrears continued to rise. Centrix’s latest Credit Indicator report shows the number of homeowners behind on mortgage repayments rose to more than 21800 in January, up 16% year on year. The mortgage arrears rate climbed from 1.40% in December to 1.47%.

A buyer’s market means more homes are available for sale at the same time. With buyer numbers unchanged, a sharp increase in sellers intensifies competition. This makes it harder for many homeowners to sell quickly at their desired price, as buyers have greater negotiating power and more choice. However, sellers can still use the following effective marketing strategies and sales techniques to sell their properties successfully.

So, as a seller, what insights and experiences would you like to share with us?

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