Experts predict fewer sales activities this year than last year
The government did not consider the real estate sector as one of the essential services to Kiwis during the COVID-19 alert level 4 lockdown. As a result, experts expect sales to drop and agents to leave the market.
Brad Olsen, an economist at Infometrics, said house prices could drop between 5% and 10% over the next 12 to 18 months. Therefore, agents and salespeople are more likely to leave the sector.
“I'd expect the number of real estate agents to fall, with a lack of activity making the real estate industry a much more competitive market for agents. With employment across the economy set to take a hammering, and house prices set to fall, there simply won't be as much work in the real estate industry, which will force agents to reassess their work and business,” Olsen told Stuff.co.nz.
Meanwhile, CoreLogic predicted 15% to 20% fewer sales activities this year than last year as the lockdown put the majority of the sector’s activities on hold.
“We have to hope the effects of the virus will be relatively short-lived, with any impending transactions simply deferred, leading to catch-up in the following months. But clearly, there is going to be a significant slowdown in property market activity to get through until an eventual recovery begins,” Nick Goodall, head of research at CoreLogic, told Stuff.co.nz.
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Bindi Norwell, chief executive of the Real Estate Institute of New Zealand (REINZ), begged to differ – insisting that agents and salespeople are trying to improve their skills during the lockdown.
“What we're seeing right now is that people are using the alert level four lockdown period as an opportunity to complete their verifiable and non-verifiable training requirements online, to leverage digital buying and selling methodologies, continue to upskill themselves and from a technology perspective in things such as VR and AR and support, and keep in contact with their customers and clients,” Norwell told Stuff.co.nz.
“So far, we haven't heard many examples of people choosing to leave the industry at this point. However, some may choose to put their licence on hold and then return to the profession when the lockdown period is over. We are in contact with real estate agents across the country to keep abreast of impacts on the industry.”
