Lower Real Estate Agent Commission A Possible Bridge Towards Market Stability

New Zealand – July 14, 2022 /MarketersMEDIA/ —

The current housing climate is uncertain, with some areas like Hamilton seeing continued annual growth of as much as 10% while much of the rest of the country’s experiencing decreases of almost the same percentage.

While this cooling off into a buyer’s market initially promised to be good for investors and first-time buyers looking for more affordable properties, the reality hasn’t met this expectation. Unlike the last two years, where limited housing stock and high buyer competition resulted in an active market, buyers are now second-guessing whether they should purchase a property at this present time or wait for a possible further decrease in prices. Interest rate hikes and threats of another global recession are adding a further damper on buyers’ willingness to invest.

Although this hesitancy is likely to persist only until the cooling period has run its course and the market stabilises –estimated to occur around this time next year – this current period of uncertainty is having a generally negative impact on the residential housing sector as a whole. Sellers are finding that they’re not gaining the same kinds of returns on investments, and agents are reporting a sharp decrease in commission earnings.

To sweeten the deal for potential buyers and keep the market alive, some real estate agencies are reconsidering their commission percentage. While some agencies have always operated either on a set-fee basis or on the lower end of the country’s 2-4% commission average, others are now also beginning to consider decreasing their fees. The logic behind this trend is that if sellers have to pay less commission, they may be willing to negotiate lower selling prices with buyers. Buyers, in turn, may then become more willing to commit to a sale. Only time will tell if this move will prove beneficial to the market.

Contact Info:
Name: Tom McSherry
Email: Send Email
Organization: Total Realty
Website: https://www.totalrealty.co.nz/

Release ID: 89078385

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