According to the latest data, property listings across the country experienced a significant decline last month, reaching the lowest level for the month of March in 16 years.

The most recent report from realestate.co.nz, reveals that the number of properties available for sale in the past month was over 9200, indicating a decrease of 17.7 percent compared to March 2022. It was the lowest number they had seen in March over a 16-year period and just over half of the 17,867 which hit the market in March 2007.

A decreasing number of property listings can have different implications for both buyers and sellers in a real estate market. Let’s explore the potential effects for each group:

For Buyers:

  1. Increased competition: With fewer properties available for sale, buyers may face increased competition from other prospective buyers. This can lead to multiple offers on desirable properties, driving up prices and potentially making it more difficult to secure a property.
  2. Limited options: A decrease in property listings means that buyers have fewer options to choose from. This may result in a limited selection of properties that meet their specific needs and preferences, potentially requiring buyers to compromise or expand their search parameters.
  3. Faster decision-making: Due to limited inventory, buyers may need to act more quickly to make decisions and submit offers. This can create a sense of urgency, requiring buyers to be well-prepared with financing and the necessary documentation to compete in a competitive market.

For Sellers:

  1. Potential for higher prices: With a decrease in supply, sellers may benefit from increased demand, which can drive up property prices. This can lead to a seller’s market, where sellers have more negotiating power and may receive multiple offers, potentially resulting in higher sale prices.
  2. Faster selling process: With fewer competing properties, sellers may experience a quicker selling process. Buyers may be motivated to make faster decisions and submit offers promptly, leading to shorter listing times and potentially faster closing periods.
  3. Limited competition for move-up buyers: If sellers plan to purchase another property after selling their current one, a decrease in property listings may mean there is less competition in the market for move-up buyers. This could provide them with more options and negotiating power when purchasing their next home.

It’s important to note that real estate markets can vary significantly based on location, economic conditions, and other factors. Therefore, the actual impact of decreasing property listings on buyers and sellers may differ in specific situations.  If you’re looking for some advice, please do reach out to me anytime.

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