Housing market: Fewer homes going under the hammer

File photo/SunLive.

The slowdown in the property market is seeing fewer homes go under the hammer.

Figures from realestate.co.nz show auction listings have fallen by more than a third on a year ago, while listings with displayed prices have jumped by close to a quarter.

Realestate.co.nz chief executive Sarah Wood says auctions were popular when there was strong competition for houses, as they allowed sellers to get a quick unconditional cash offer for the property.

But Wood says sentiment is changing.

Methods of sale on realestate.co.nz Photo: Supplied / realestate.co.nz.

"I would say we're coming off an unprecedented market in terms of really high demand."

Recent reports from CoreLogic and Quotable Value have shown that house prices are coming under pressure from rising interest rates, tighter lending criteria and a shift in buying behaviour from fear of missing out, to fear of over paying.

"We're also seeing 77 per cent more properties on the market in May this year, versus last year and that gap between the number of buyers and the number of buyers is coming closer together."

It takes some urgency out of the market and allows people to have more time as they looked at what options are going to suit them, says Wood.

"Property is a two-sided transaction so those who are usually selling are looking to buy as well, so it actually works for sellers and buyers."

Wood says people looking to sell need to make sure they understand the characteristics of their property to determine what sales strategy works best.

-RNZ.




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