Survey reveals lack of lending
(24 February 2010 – New Zealand) A recent survey of the salespeople at the, New Zealand arm of, real estate company First National has revealed that a significant number of deals are falling through due to a lack of bank finance.
The survey, for the mid November to mid February period, measuring market activity was conducted cross 70 of the company’s offices nationwide.
According to the survey, over one third of rural sales offices reported deals in their region falling through due to lack of bank finance, although the number of deals overall was down considerably than the same time last year.
The market with the most listings and sales for the quarter was lifestyle and those surveyed noted that price adjustments were downward in at least one sector of the rural property market, averaging 7 to 11 percent less than the corresponding period for last year.
The survey respondents’ advice for buyers was to confirm finance before attempting to buy. Many said that vendors were becoming more motivated to sell and prices would not go much lower.
John Stewart, general manager, First National Group noted continued extremely low sales volume and the negative effect on sales of bank demands for, in some cases well over 50 percent equity by the buyer.
Dairy property purchasers are very much under the gun as far as bank equity demands go and this is definitely keeping private buyers out of the market, Mr Stewart added.
While the dollar stays high and banks continue to demand unusually high purchaser equity, worldwide consumer prices and volumes remain low, the group does not expect to see much change in sales volume, Mr Stewart noted.
According to the survey, over one third of rural sales offices reported deals in their region falling through due to lack of bank finance, although the number of deals overall was down considerably than the same time last year.
The market with the most listings and sales for the quarter was lifestyle and those surveyed noted that price adjustments were downward in at least one sector of the rural property market, averaging 7 to 11 percent less than the corresponding period for last year.
The survey respondents’ advice for buyers was to confirm finance before attempting to buy. Many said that vendors were becoming more motivated to sell and prices would not go much lower.
John Stewart, general manager, First National Group noted continued extremely low sales volume and the negative effect on sales of bank demands for, in some cases well over 50 percent equity by the buyer.
Dairy property purchasers are very much under the gun as far as bank equity demands go and this is definitely keeping private buyers out of the market, Mr Stewart added.
While the dollar stays high and banks continue to demand unusually high purchaser equity, worldwide consumer prices and volumes remain low, the group does not expect to see much change in sales volume, Mr Stewart noted.
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