Vendors start to adjust their sights – Century 21 boss

More and more vendors are keen to do a mutually satisfactory deal, real estate leader says

Vendors start to adjust their sights – Century 21 boss

Following industry observations that a buyer standoff contributed to the lowest number of sales for January, Tim Kearins (pictured above), owner of Century 21 New Zealand, said that “with summer drawn to a close, more and more vendors are coming to the party, keen to do a mutually satisfactory deal.”

Read more: Housing markets continue to weaken as credit tightens and interest rates rise

“Buyers have stood back, but now that we’re into autumn vendors seem more prepared to negotiate a good outcome,” Kearins said. “They’re keen to sell while sales prices remain strong and before the onset of winter and obvious market uncertainty.”

Kearins said that while listings industry-wide were very low at the start of summer, they started lifting from January, which will result in increased sales activity in March and April.

“Many houses are taking a little longer to sell, but increasingly vendors understand they don’t want to be the one with the faded ‘for sale’ sign,” Kearins said. “That doesn’t do a property any good, so many are working with the enquiries they’re getting, which is seeing some good results achieved.”

Kearins said vendors also realise that lending rules have got a lot tougher, with pre-approved finance harder to achieve.

Read next: Century 21 New Zealand bids farewell to part-owner

The industry is looking forward to REINZ’s latest February sales statistics, which will be released soon, with the Reserve Bank lifting the official cash rate last month for the third consecutive time since October.

“Interest rates remain relatively low and both buyers and sellers realise this,” Kearins said. “Buyers are keen to act and lock in low, while vendors want to secure a sale while good rates and finance remain available. What’s more, with more expats now coming back into the country without having to quarantine, we have more buyers, not fewer. These are key factors that those contemplating selling need to consider.”

LATEST NEWS