Most house sellers had become fully aware of the realities of the current housing market and were entering negotiations with realistic expectations, Harcourts CEO Bryan Thomson said. Harcourts reported almost 1,950 written sales in May, up 40% from a year ago, but still down 21% from May 2007 and 29% from May 2006. "This marked improvement in the volume of written sales (from May 2008) follows the trend in March 2009 (30.4% increase on March 2008) and April 2009 (44% increase on April 2008)," Thomson said. "In terms of the figures we report there were fewer new listings last month than in May 2008, while the average written sale price in all but one region (Northern) was down on May 2008," he said. Exclusive listings in May fell 24% from a year ago, with listings in the South Island (excluding Christchurch) down 35% from May 2008. The average sale price in the Northern region of the country, which includes Auckland, was unchanged from May 2008 at NZ$481,000. It fell 4% in the Central region to NZ$352,000 and was down 11% in the Wellington region at NZ$324,000. Christchurch prices were down 8% at NZ$365,000 while the South Island provincial region experienced a 17% drop, down to NZ$308,000. "In our view attractive lending rates, positive immigration statistics and some positive rumblings internationally have all contributed to the increased activity," Thomson said. "Of equal stimulus is that most sellers are now fully conversant with the realities of the current market and are entering negotiations with realistic expectations," he said. "Predicting what may or may not occur over coming months in the New Zealand real estate market is a favourite national pastime, and always attracts a lot of comment when views are publicised." "As far as Harcourts is concerned, given the fundamentals that are in play and driving our market right now, we see no reason for today's solid real estate market not to continue." "As long as sellers understand the market and have realistic expectations they can expect to achieve good results. Equally, buyers who do their homework and enter negotiations positively and with realistic expectations too can also look forward to securing their next property at today's attractive levels."
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