It is still a good time to be a realtor, chief says
Even with the housing market performing worse than last year, the Real Estate Institute of New Zealand (REINZ) is not worried about real estate agents exiting the industry, saying it’s still a good time to be a realtor.
Jen Baird, REINZ chief executive, said the slower pace was only natural after a “monster of a year in real estate.”
“We have to remember that 2021 was a monster of a year in real estate,” Baird told RNZ. “It broke all the records in terms of the amount of property that was changing hands across New Zealand in pretty much every single market. What we're seeing now is far more normal.”
The volume of house sales had plummeted by about 30%, she said.
Houses also take 10 days longer on average to sell compared to last year.
“It's taking a little bit longer to put those deals together, which you would expect when demand is easing and there is a fair amount more supply around,” Baird said.
She said buyers were feeling hesitant amid inflationary concerns.
“What we have seen across the year is ongoing increases in interest rates and economic uncertainty, and conversations around inflation, and the property market sits within that overall economic conversation,” she said. “All of that creates uncertainty for buyers and they’re absolutely taking their time.”
Baird said what the industry was experiencing right now was more of a correction than a downturn.
“The property market, like all markets, is cyclical, and we’re looking at the same sorts of numbers we were talking about in 2010 and 2011,” she said. “Real estate people that have been around for a wee while will have seen a number of these cycles.”
The slower pace might have some realtors doubting their careers, but Baird wasn’t worried that there would be a mass exodus.
“There’s been lots of talk about [people leaving the industry], but we’re not really seeing that just yet,” she said. “If I look at the latest active licenses from the Real Estate Authority, they are higher than they have been.”
The same can be seen in Baird’s organisation.
“From a REINZ membership perspective, it’s down a little bit from about six months ago, but really nothing that suggests people are leaving in droves,” she said.
Baird urged homeowners not to worry, and instead, manage their expectations.
“You need to recognise that it's unlikely that you're going to list your house this week and it's going to be sold next week,” she said.
The market had changed, and would likely continue to do so, she said.
“Throughout the year, we’ve seen an easing in the growth of prices,” Baird told RNZ. “All indications are, with another rise in interest rates likely in February, that we will continue to see an easing for the next little while.”
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