The Ray White Group across New Zealand saw a significant rise in property sales for January 2021.
The overall volume lifted to just under $1 billion worth of sales, which is an increase of more than 50 per cent on the same time last year.
January is typically a seasonal time and it is difficult to put a judgement on supply and demand.
The Ray White Group across New Zealand sold 1,298 properties and listed just under 1,500 new properties, giving a total inventory rise of 197.
This is considered a small amount given the deeper buyer pool that exists and when you compare it to the previous January 2020, the stock levels added were 60 per cent less.
“The January results show the continuing momentum that’s in the property market currently,” said Ray White New Zealand Chief Executive Carey Smith (pictured above).
“The search of investors and first home buyers make up 50 per cent of the buyer classification and this is at its highest level since quarter three 2016.
“Investors are potentially moving ahead of the LVR requirements and are now the leading buyer classification, with the last quarter of 2020 and January 2021 showing they purchased 28 per cent of all property across the network.
“When you add in first home buyers, who purchased 23 per cent of all new property, this makes up significant reasoning behind the low level of new supply of property given display of classification does not bring new supply of listed property to the market.”
The results generally reflect the continuing activity across several markets with Ray White Manukau in South Auckland being the number one agency for the company with close to 100 sales.
This was a record result for their business in the month of January since they began trading as a member of the Ray White Group.
Ray White City Apartments also had a strong month with investors looking to apartments for a good return on yield and potential capital gain.
Ray White Howick in the Eastern Beaches of Auckland recorded an 83 per cent increase on the same time last year.
Ray White Wellington City and Ray White Petone, together with Ray White Hutt City, all produced strong months in the Lower North Island region of New Zealand.
Listings for the company remain at a reasonable level and there is an expectation there will be a lift of new property coming onto the market during February 2021. Traditionally this time of the year sees a surge of property as auction activity lifts.
Ray White Now edition 35 goes into detail on the by classification and closely looks at the recent price increases across New Zealand and the effect this has had on various markets, together with a view on interest rates.