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How to compete in a market crowded with property listings
Agent trainer Josh Phegan and Trade Me Property’s Gavin Lloyd weigh in
We talk to two industry experts about what sellers need to know about the state of NZ's property market in early 2025.
First, let’s explore what market conditions are like across the country for sellers with Gavin Lloyd, Trade Me Property’s Sales Director. Then international top agent trainer Josh Phegan will give his insights on what smarts your agent can use to help bring your home to buyers’ attention.
Gavin Lloyd, Sales Director, Property
What have listing volumes been like in the main cities and some of the popular regional cities in early 2025?
Generally, I’d say that it’s been a sluggish start to 2025. However as the year keeps progressing we have seen listing volumes starting to accelerate. All of our main markets, Auckland, Wellington and Christchurch have seen more listings coming to Trade Me Property in the back half of January. Christchurch and Wellington in particular are up 16% and 10%, respectively. There’s a degree of optimism for the start of the year so it's safe to assume that, once some of the larger public holidays are completed, we'll see a continuation of new stock hitting the market.
January, February, and March are always busy selling months but do you think there’s more to it than that?
Seasonality certainly has the biggest impact on the sale of houses during the summer months. Historically, March is when Trade Me Property sees the largest amount of listings coming to market.
The cuts to the OCR near the end of 2024 did give a renewed sense of confidence for the market which resulted in a strong October listings wise. While there are still challenges for the property market, in particular around affordability, green shoots do seem to be on the horizon.
What are the stats for how long houses for sale are spending on the market (days on site) for 2025 compared with the same period in 2024? Does this tell you anything?
Similar to what we've seen with listings coming to site in early 2025, days on site have also been pretty sluggish. In early 2024, days on site were sitting at around ~76 days, as we closed 2024 this number had reduced to ~50. However, with the flood of listings at the end of 2024, many of which failed to sell, we’re currently seeing days on site sitting at around ~80 days. This is something that we tend to see in the month of January, and our expectation is that this figure will start to decrease as the market comes back to full steam in mid February/March.
What are house prices doing in 2025 so far?
The end of 2024 saw house prices softening, with the Trade Me Property Price Index showing that the average asking price dropped 0.6% nationally in November to sit at $849,550. It’s too early in the year to get a good guide on how prices are faring in 2025. However, with no real change to market conditions it’s safe to assume that any growth would be modest.
It’s important to note that, while the national average asking price dropped, there are always exceptions to trends, with regions like Gisborne and Taranaki posting year-on-year growth of 4%. Additionally, even within markets, there are always sales that are counter to the national picture. Have a chat to your local real estate agent to get a hyper local view of the market you’re interested in.
Are vendors being realistic about pricing? It seems like buyers out there are still expecting to find a bargain.
This is somewhat of a constant challenge for the property market, however it's probably more visible currently. Buyers have a good degree of choice, which takes the heat out of the market and means sellers are facing considerable competition. This dynamic, along with the continued challenges on affordability for buyers, is accentuating the gap in market between vendor expectations and buyers.
Do you think the usual selling period of January to March might extend further this year into April and May, with so many properties waiting to sell?
With days on site sitting above average, the higher levels of stock on market and the lift in new listings we’re expecting in February and March, it feels safe to assume that a good proportion of these sales will happen during the Autumn period. Strongly marketed and well priced stock should be the exception here.
Josh Phegan, Real Estate Speaker, Trainer, Coach
How can your agent help your property stand out in a crowded market?
An agent will look at previous properties their agency has sold nearby and they’ll find the buyers who still have an appetite to purchase. They’ll also review previous appraisals to find potential buyers who would sell to buy your property.
Your agent may have recently sold a neighbourhood property at a good price. When they market a property as ‘just sold’, they’ll add in three additional properties that buyers could look at instead. For instance, 21 Jones Street has now sold; if you missed out, try 1 Smith Street. Buyer transfers are essential in any market.
Some agents will share the sale commission with another competing agent if they introduce a buyer to the property and help facilitate a deal. How does this work?
If another agent introduces a buyer, there’s a standard referral fee. It may be 20%, dependent upon the level of involvement. A 50/50 split is usually negotiated on a ‘conjunctional,’ where the agents are both involved in listing and marketing the property.
What else can sellers do to help successfully sell their home in a competitive market?
You should stay ahead of the market conditions. Review daily all the new listings and sales in your area. Markets are dynamic. A new listing that is for sale at a lower price will sell quickly and leave yours on the market. Sold results are a great way to cement the value of your home. Listen to your agent and seek their advice on what to do next.
Some properties may appeal to investors, first home buyers and downsizers. How can an agent use clever marketing to target multiple audiences?
If your home would suit investors, your agent will ensure you have a rental appraisal letter, as they’ll need that for their finances. If the property is tenanted, they’ll make sure that that information is included in the description. If it’s an affordable home which might be within a first home buyer’s budget, then your agent will include key messages in the listing copy like ‘great for first home buyers’. Meanwhile, if wanting to appeal to downsizers, your agent will emphasise important features that they’ll appreciate like ‘single-level living’, ‘no stairs’ and “‘ock and leave.’
Does the method of sale vary depending on how competitive the market is?
I would say auction creates action but also a well run ‘for sale’ campaign can achieve the same thing. It’s all about what your agent does. They may launch your home on a Tuesday and have a mid-week open house, so by the time you do your first weekend open home, you’ve already got buyers coming back for a second look. Ask for your agent's recommendations. It’s the little things that make a big difference in sales success.
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