The October real estate sales for the Ray White Group in New Zealand have proved the strongest month since the global financial crisis.
October figures collected today show Ray White New Zealand recorded sales up 29 per cent on October last year and matched the unseen turnover highs of March 2007: $500million.
The network of 135 offices finalised 1,216 sales, 21 per cent more than the previous month, the greatest amount of transactions since November 2007.
The Auckland market, in particular, has shown a considerable increase with double the sales recorded in 2012 against the same period in 2011.
Carey Smith, Chief Executive of Ray White New Zealand said the 2012 sales have continued steadily, with turnover increasing by 41 per cent nationally year to date.
“This is driven by a combination of factors including the continued migration of those affected by the Canterbury earthquake relocating throughout New Zealand and record low interest rates which have been consistent for over 12 months and gives buyers confidence. Added to this, Banks are also taking a balanced approach to the way they consider funding property and this also allows buyers to purchase property.”
Across New Zealand all markets continue to show higher sales volumes. The Canterbury area has returned to its pre-earthquake sales numbers and is up 37 per cent on last year. Most activity around the country is occurring in the CBD and city fringe markets, where there continues to be a lack of stock and this is placing pressure on prices, which are increasing, while also lowering the days on market.
Megan Jaffe, the owner of Ray White Remuera, who’s team completed over $30 million in sales for October.
“There is definite momentum in the market at all levels. Sellers are showing they are responsive to the market. They are sellers one day and becoming buyers the next,” she said.
Simon Damerell from Ray White Ponsonby who work through the city fringe markets, said there has never been greater numbers of open home attendees and registered bidders at auctions.
“There is a high degree of activity and while there may appear to be a shortage of stock, the same number of properties are being listed; it’s just that the higher turnover is at any given time resulting in less properties on the market,” Mr Damerell said.
Tony McPherson from the Ray White Metro group in Canterbury said that there is continued activity throughout Canterbury with the movement of those in the Red Zone and also those relocating into the city for work opportunities.
“The movement of people and the rebuild plans recently announced have added increased activity into the Canterbury market and that is resulting in record sales,” Mr McPherson said.
The national average sale price value at the end of October 2012 for Ray White was $452,592. This is up on September 2012 at $445,326 and also up on October 2011 which was $440,918.
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