Sale prices are inching closer to asking prices, particularly in Auckland, according to property commentator Alistair Helm.
Over the past three years, REINZ statistics show that the sale price of properties was generally about 15% below the asking price, although there had been a slight rise over the past six months.
But for Auckland, the difference between asking price and sale price has been a lot smaller over that time and there had been a significant narrowing of the gap over the past 18 months.
Sale prices are now only about 5% below asking prices.
Helm said there were several possible explanations. “Is it a function of the rising Auckland house prices? Could it be more cautious real estate agents not pricing property too far ahead of expectation in Auckland?”
He said Auckland had a higher proportion of properties going to auction, displayed with a price range rather than a set price.
“Agents who want to attract as many buyers as possible, maybe pitch a property with a range that is below the current market price.”