Just like Jaws, The Matrix and Speed II – a follow-up doesn’t always yield the same success, and the evolution of New Zealand’s residential property sector following the extraordinary growth of 2016 has certainly prompted critics talking.
Across New Zealand, it is undeniable that the real estate landscape is in a state of flux. Sale volumes are down, yet regions continue to report record sale prices – and it can all be very confusing to those not immersed in the industry.
The best way to explain these fluctuations is that real estate operates like clockwork. The favourable-market we have experienced in recent times is deemed a ‘sellers-market’ and sits at the top of the cycle in 12 o’clock position, while the ‘buyers-market’ at six o’clock indicates an easing of competition and sale prices.
Bayleys has been in the business now for 45 years, and we have weathered every phase of this cycle – through the sales upswing of 1975, the huge development which characterised the early millennium and the crippling effects of the Global Financial Crisis of 2008/2009, we have learnt a thing or two about maximising results when the going gets tough.
The domestic property market has been riding the wave of nine pm to midnight for quite some time now – values have been high, and demand has fed momentum, yet we find ourselves teetering on the edge of one am and the possibility of the unknown is having an intimidating effect.
But it’s not the unknown – and there is no need to be frightened of a shifting market.
It’s true that effecting a successful sale will become more difficult, salespeople will have to work harder to deliver results as the buyer pool diminishes due to rising credit costs and lending restrictions.
It is clear that times are a’ changing, and the property clock is ticking away, but change is the catalyst for opportunity. It’s an opportunity to improve infrastructure, where developers and local government can come together to mitigate risks and create meaningful projects. It’s an opportunity for individuals to reassess their financial values - perhaps it’s time to recycle to profits from the batch and help your children into a home of their own? And it’s an opportunity for the professionals qualified to sell real estate to really polish their skills.
Whatever your motivations, or the economic climate – people will always buy property. It’s the skill of your sales agent and the scope of your marketing campaign which will determine success.
The last 18 months of this property cycle has seen demand for Auckland property so high, it has practically sold itself, yet it’s the months ahead which will truly test the expertise of sales professionals.
Traditionally, Bayleys has performed very well during less buoyant periods in the market simply, because we offer the tools, knowledge and skills that others don’t. Rather than compromising on commission, agents are trained to add value to each transaction by investing in smart, targeted marketing, casting the net wider and ultimately delivering THE buyer – not just the first buyer.
As one of New Zealand’s leading real estate agencies, we understand that in the absence of value, sellers will look to negotiate. Which is exactly why we look to add that value, elevating our service above the competition and finding the buyer prepared to pay just that little but more for your property.
When looking to market your home in the coming months, there are several elements of service which you can demand from your salesperson, firstly, look to engage a local expert, their knowledge of the area along with local networks and neighbourhood ties will certainly yield results – as it’s usually about who you know. Pay attention during their submission presentation, this is their time to showcase their skills and they will not waste it. And finally, don’t be afraid to question them – why exactly should you choose them? Good salespeople know what gives them the edge in the market, and they will be only too happy to explain this to you.
While change is an inevitable force, shifting and pulling everything from energy to enterprise, it needn’t be frightening because, very simply - there is no perfect time to buy or sell. It’s a matter of utilising educated, experienced advice and smart service from professionals you trust. And those who know their value will be confident that they will achieve the very best result for you.