The property market is continuing to experience significantly higher levels of sales activity compared to 12 months ago and many are selling at auction, according to Harcourts' latest statistics.
The latest Harcourts MarketWatch reports an average of 30.8% more written sales made in June than in the same month last year, continuing the trend the company has been reporting for some months.
"The largest increases were in Harcourts' Central region, where we recorded a 58% increase in written sales, followed by the Northern region (51% up), Christchurch region (34% up) and Wellington region (29% up)," Harcourts chief executive Bryan Thomson says.
The increase in sales has also encouraged a rise in auctions, according to the Harcourts report.
"The increase in sales, coupled with lower-than-expected numbers of new listings, is seeing buyers experiencing considerable competition when looking to secure a new property. And in an effort to capitalise on [the increasing number of active purchasers in the market], increasing numbers of sellers are choosing auction campaigns, which, according to feedback from Harcourts offices around the country, is proving to be the most successful method of sale," Thomson says.
In the South Island provincial region, auctions were up 58% in June, compared to the same month last year. Christchurch recorded a 57% increase in successful auctions for the month. The Central region also recorded a doubling of properties sold at auction, with a 53% increase from June last year.
Demand for residential sections appears to be reigniting in many locations as well, according to the report.
"Harcourts offices around New Zealand are reporting a considerable increase in enquiry in these types of property, with some experiencing a lift in sales already and others expecting this to occur in the near future," Thomson says.
He believes the trend is to be expected, given the lack of houses for sale and the fact the availability of tradespeople has improved, "and they are typically more negotiable on price too".