First National reports 17% rise in confirmed sales in Oct from Sept, but says buyer enquiries dropped in late Oct on RWC, Greek woes

By Bernard Hickey

Real estate agency group First National has reported confirmed sales rose 17% in October from September, but that buyer enquiries fell in late October because of the Rugby World Cup, School Holidays and concerns about the Global Financial Crisis.

It also reported stronger activity and buyer inquiries for larger, more expensive homes in Auckland, Christchurch and some of the Alpine resort destinations such Cromwell and Wanaka. This confirms a trend seen in recent months where the upper end of the market in large cities with supply contraints such as Auckland and Christchurch are pulling away from the more subdued outer fringes and provincial areas, particularly for smaller, cheaper houses.

The survey results from First National's offices are the first from any of the estate agency chains for October. Realestate.co.nz reported listings information for October on Tuesday showing asking prices at a record high but listings down 11% on a seasonally adjusted basis.

Sales volume and average price figures from Barfoot and Thompson, Auckland's biggest estate agency chain, are due soon, followed by sales figures from the Real Estate Institute and house value figures from Quotable Value later in the month.

“While confirmed sales rose 17% in October from September, member offices certainly report a drop-off in enquiry in the latter part of the month, mostly in areas directly impacted by the Rugby World Cup," First National Group general manager John Stewart said.

“This trend is exacerbated by the traditional downturn in enquiry due to school holidays and people’s reticence during periods of pessimistic financial news, which in this case is the Greek crisis and its influence on the world economy,” he said.

First National Motueka Principal Bob Brereton reported his office had nine open open homes over Labour Weekend and not a single attendee.

“The combination of the Rugby World Cup and school holidays was a perfect storm," he said.

Stewart said inquiries had risen at 37% of First National's offices in the days after the World Cup.

He said house prices were mostly steady across the market, but smaller homes seemed to be under price pressure.

The survey of listing levels, sales, market trends and overall activity across First National’s network found house prices were consistent in October from a year earlier across 46% of the country. This was an improvement from September when 44% of offices reported prices were lower from a year earlier.

The survey found 46% of First National respondents said prices for two bedroom properties were lower than October 2010.

First National's offices in Kaitaia, Mangonui, Motueka, Blenheim, Otaki, Greytown, Riverton, Cromwell, Wanaka, Te Awamutu, New Plymouth, Stratford, Hawera and Whangamata said prices were lower across all sized properties.

Offices in Glendene, Ilam (Christchurch) and New Brighton (Christchurch) said prices had increased across all sized properties.

Inquiries through First National offices in Howick, Manakau, Golden Bay, Cromwell, Wanaka, Ilam (Christchurch) and New Brighton (Christchurch) were up across all the avenues of open homes, the web, phone calls and walk-ins.

The survey showed 41% of First National respondents had an increase in appraisal requests in October compared with the previous month.

Of the appraisals which did not convert to a listing, 68% of First National respondents believed vendors are waiting for a better time to sell. This was predominant in Northland and central North Island offices.