Real estate agents are among the businesses feeling more upbeat.
The Herald's latest Mood of the Boardroom survey shows that business owners are more optimistic than pessimistic about their industries, as well as the local and global economy.
Optimism varies across the different sectors, with the real estate industry topped the list with an average score of 4.33/5, a substantial jump from last year’s 2.60/5.
Barfoot & Thompson managing director Peter Thompson told Kerre Woodham that what businesses needed was good news, and that’s what came out of today’s conference.
He said that they’re already starting to see people come back to their auction rooms, and looking back at the last few months, they’ve seen a big uplift in the number of listings on the market and sales being made.
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Speaker 1 (00:06):
You're listening to the Carrywood and Morning's podcast from News
Talks d B.
Speaker 2 (00:12):
Senior business leaders. As I was saying, a feeling more upbeat,
the Herald's latest Mood of the Boardroom survey shows they're
more optimistic than pessimistic about their industries and the local
and global economy. Optimism varies across the different sectors, with
the real estate industry topping the list with an average
score of four point three to three out of five,
a substantial jump from last year's two point six out
(00:34):
of five. Barfoot and Thompson Managing Director Peter Thompson joins me, Now,
very good morning to you.
Speaker 3 (00:40):
No good morning, Cairie.
Speaker 2 (00:42):
I was saying, though real estate agents are by nature
a bunch of bouncy tiggers, you are more inclined to
be optimistic. It's just in the nature of the profession,
isn't it?
Speaker 3 (00:53):
Without doubt? You know, we always like to think of
the positive, but we're also the most realistic about seeing
going through downturns and how long it takes to sort
of rebound from them. Because as you must wall be aware,
I've been in the industry forty four years. I think
it is this year We've been through many cycles and
(01:16):
people say it's never going to rebound, but real estate
does rebound. It's just like a time cycle, and we're
heading back to the upper quarter, which is the positive sign.
Speaker 2 (01:29):
I spoke to a number of people in real estate
over the last two years who said they just did
not have figures for how bad it became.
Speaker 3 (01:38):
Yeah, I would have to agree with that. You know,
through the times that I've been through, this would be
mutably the second, possibly the third toughest period it certainly,
I think a lot of it was through the unknown
of COVID and how that was going to have the
effect on us. And I think we can look back
at that and say, whilst it was a very good
(01:59):
period strade after COVID, that most probably was the point
where we know everything went back. Ad.
Speaker 2 (02:07):
What's it done to the industry. Have you seen many
people leave because they've just had.
Speaker 3 (02:12):
To No, I think that's been the incredible part. Well,
certainly within our own company, and also knowing the figures nationally,
most people live held on there. You know, some that
may not been earning through the tough times certainly earned
enough to get through them. There's been a few that
are doing part time jobs like uber driving. It's amazing
(02:35):
how many uber drivers are retestate agents. But you know,
I've got you know it is unless you make a sale,
you don't get paid, and you've got to be able
to put money on the you know, for the families,
et cetera. And that's why some of them do look
at second jobs.
Speaker 2 (02:52):
Summer generally brings an upturn in optimism and confidence and people.
People's homes look better in sunshine than they do in
the rain and the sludge. So are you expecting to
see more people put their properties up for sale or
are they still holding on to thinking they're going to
(03:13):
get those silly numbers that were happening just after COVID.
Speaker 3 (03:17):
I think if we just look at the last two months,
we've certainly seen a big uplift in the number of
listings that have been coming on the market and it's
reflecting in the number of sales. Last month we sold
nine hundred and ninety eight settled sales in Auckland and
that was the probably the highest number of sales we've
(03:37):
had other than a March, which is traditionally our biggest
month of the year. But that goes right back for
about the last six or seven years. So we're certainly
starting to see light at the end of the tunnel.
Interest rates are starting to turn down, and I think
before Christmas we'll see hopefully another two cuts in the
(03:57):
OCR rate, which will just ready boost not just ret
estate but all business. I think businesses have ready had
it half and that's what we need is some good news.
And I think that's what that came out of the
meeting today.
Speaker 2 (04:12):
Yeah, it is. And confidence begets confidence, doesn't it. When
people feel good. When people feel confident, when people feel
hopeful and positive, they will spend.
Speaker 3 (04:23):
Well. That's you know, we're starting to see people come
back to our auction rooms and you know that that
is a real positive sign and some incredible success stories
in the auctions. But it's just about making sure that
the property is salable and it's listed at the right price. Well,
(04:44):
the vendor's expectation is not thinking, well, I'm going to
make money if I put it on the market. Now,
you know, if you're going to think you're going to
make a real big gain, it possibly is not the
time to put it on. But if you're already wanting
to sell your property, there's a lot of good buyers
out there getting ready to make that offer.
Speaker 2 (05:03):
And also if you're looking to go and or a
smaller house or downsize or buy a bigger one, you're
buying in the same market, aren't you.
Speaker 3 (05:12):
Yeah, that's dead right, And it's amazing how many people
are actually downsizing. And I think some of them are
being hurt with the high interest rates that they got
borrowed and didn't expect to go up to that rate.
I think some of them are now just paying off
some excess mortgage and going down level simultaneously. There's others
(05:34):
that are increasing because they see that the interest rates
are stime to come. So you know, there's a lot
of good buyers out there.
Speaker 2 (05:42):
And when do you see good times coming, like really
good times returning.
Speaker 3 (05:50):
You know, it's positive signs. We're seeing good stuff happening
out there at the moment. But I still do say
with caution, you know, there's still a lot of people
that are hurting, and I think it's going to be
certainly another six months before a good portion of New
Zealand's going to be able to look forward in a
positive manner. If I was looking at buying, I'd be
(06:15):
looking at buying now. If I was thinking selling, I'd
put it on because no time, at the right time
or not. If you're looking at buying and selling, you
just said it before, you're buying and selling in the
same market, and it doesn't matter whether it's a good market,
low market, whatever, you're still buying in that same that market.
(06:35):
But I think with the interest rates coming down, just
keep flexibility on how much you're fix and how much
you float, or just review them on a regular basis
rather than a long term basis, because I think we
will start seeing interest rates come down. On the other hand,
I say, with caution, don't let's hope we don't go
(06:56):
down much below say two or three percent, because we'll
just get back into the situation we were where all
of a sudden we have to go up to an
affordable I.
Speaker 2 (07:07):
Know you spent some time overseas. Did you Was that
purely rest and relaxation or did you have a long
hard look at what was happening over there?
Speaker 3 (07:16):
It was purely relaxation. But whenever I go overseas, I'm
always looking and seeing. But I think more importantly we're
a member of Leading Real Estate Companies of the World
organization with bartrom Thompson and we get to hear what's
happening around the world. And I think that the most
important thing I saw was when COVID came all real
(07:38):
estate around the world came back to a flat bottom period.
And since then we're starting to see movements from the US,
from China, from the Europe, UK, etc. And New Zealand's actually,
if I could say, almost slightly six months ahead than
(07:58):
many of those other countries. And I think that just
shows where people see New Zealand real estate as a
very good investment. Yeah, I've got good positive signs, but
we do have to be aware of what's happening in
the world at the moment. With these walls that are
going on, they can have an impact, specially if they
get bigger.
Speaker 2 (08:19):
Nice to talk Peter, as always Peter Thompson, barf and
Thompson Managing Director.
Speaker 1 (08:24):
For more from carry Wood and Mornings, listen live to
news Talks. It'd be from nine am weekdays, or follow
the podcast on iHeartRadio.
You're listening to the Carrywood and Morning's podcast from News
Talks d B.
Speaker 2 (00:12):
Senior business leaders. As I was saying, a feeling more upbeat,
the Herald's latest Mood of the Boardroom survey shows they're
more optimistic than pessimistic about their industries and the local
and global economy. Optimism varies across the different sectors, with
the real estate industry topping the list with an average
score of four point three to three out of five,
a substantial jump from last year's two point six out
(00:34):
of five. Barfoot and Thompson Managing Director Peter Thompson joins me, Now,
very good morning to you.
Speaker 3 (00:40):
No good morning, Cairie.
Speaker 2 (00:42):
I was saying, though real estate agents are by nature
a bunch of bouncy tiggers, you are more inclined to
be optimistic. It's just in the nature of the profession,
isn't it?
Speaker 3 (00:53):
Without doubt? You know, we always like to think of
the positive, but we're also the most realistic about seeing
going through downturns and how long it takes to sort
of rebound from them. Because as you must wall be aware,
I've been in the industry forty four years. I think
it is this year We've been through many cycles and
(01:16):
people say it's never going to rebound, but real estate
does rebound. It's just like a time cycle, and we're
heading back to the upper quarter, which is the positive sign.
Speaker 2 (01:29):
I spoke to a number of people in real estate
over the last two years who said they just did
not have figures for how bad it became.
Speaker 3 (01:38):
Yeah, I would have to agree with that. You know,
through the times that I've been through, this would be
mutably the second, possibly the third toughest period it certainly,
I think a lot of it was through the unknown
of COVID and how that was going to have the
effect on us. And I think we can look back
at that and say, whilst it was a very good
(01:59):
period strade after COVID, that most probably was the point
where we know everything went back. Ad.
Speaker 2 (02:07):
What's it done to the industry. Have you seen many
people leave because they've just had.
Speaker 3 (02:12):
To No, I think that's been the incredible part. Well,
certainly within our own company, and also knowing the figures nationally,
most people live held on there. You know, some that
may not been earning through the tough times certainly earned
enough to get through them. There's been a few that
are doing part time jobs like uber driving. It's amazing
(02:35):
how many uber drivers are retestate agents. But you know,
I've got you know it is unless you make a sale,
you don't get paid, and you've got to be able
to put money on the you know, for the families,
et cetera. And that's why some of them do look
at second jobs.
Speaker 2 (02:52):
Summer generally brings an upturn in optimism and confidence and people.
People's homes look better in sunshine than they do in
the rain and the sludge. So are you expecting to
see more people put their properties up for sale or
are they still holding on to thinking they're going to
(03:13):
get those silly numbers that were happening just after COVID.
Speaker 3 (03:17):
I think if we just look at the last two months,
we've certainly seen a big uplift in the number of
listings that have been coming on the market and it's
reflecting in the number of sales. Last month we sold
nine hundred and ninety eight settled sales in Auckland and
that was the probably the highest number of sales we've
(03:37):
had other than a March, which is traditionally our biggest
month of the year. But that goes right back for
about the last six or seven years. So we're certainly
starting to see light at the end of the tunnel.
Interest rates are starting to turn down, and I think
before Christmas we'll see hopefully another two cuts in the
(03:57):
OCR rate, which will just ready boost not just ret
estate but all business. I think businesses have ready had
it half and that's what we need is some good news.
And I think that's what that came out of the
meeting today.
Speaker 2 (04:12):
Yeah, it is. And confidence begets confidence, doesn't it. When
people feel good. When people feel confident, when people feel
hopeful and positive, they will spend.
Speaker 3 (04:23):
Well. That's you know, we're starting to see people come
back to our auction rooms and you know that that
is a real positive sign and some incredible success stories
in the auctions. But it's just about making sure that
the property is salable and it's listed at the right price. Well,
(04:44):
the vendor's expectation is not thinking, well, I'm going to
make money if I put it on the market. Now,
you know, if you're going to think you're going to
make a real big gain, it possibly is not the
time to put it on. But if you're already wanting
to sell your property, there's a lot of good buyers
out there getting ready to make that offer.
Speaker 2 (05:03):
And also if you're looking to go and or a
smaller house or downsize or buy a bigger one, you're
buying in the same market, aren't you.
Speaker 3 (05:12):
Yeah, that's dead right, And it's amazing how many people
are actually downsizing. And I think some of them are
being hurt with the high interest rates that they got
borrowed and didn't expect to go up to that rate.
I think some of them are now just paying off
some excess mortgage and going down level simultaneously. There's others
(05:34):
that are increasing because they see that the interest rates
are stime to come. So you know, there's a lot
of good buyers out there.
Speaker 2 (05:42):
And when do you see good times coming, like really
good times returning.
Speaker 3 (05:50):
You know, it's positive signs. We're seeing good stuff happening
out there at the moment. But I still do say
with caution, you know, there's still a lot of people
that are hurting, and I think it's going to be
certainly another six months before a good portion of New
Zealand's going to be able to look forward in a
positive manner. If I was looking at buying, I'd be
(06:15):
looking at buying now. If I was thinking selling, I'd
put it on because no time, at the right time
or not. If you're looking at buying and selling, you
just said it before, you're buying and selling in the
same market, and it doesn't matter whether it's a good market,
low market, whatever, you're still buying in that same that market.
(06:35):
But I think with the interest rates coming down, just
keep flexibility on how much you're fix and how much
you float, or just review them on a regular basis
rather than a long term basis, because I think we
will start seeing interest rates come down. On the other hand,
I say, with caution, don't let's hope we don't go
(06:56):
down much below say two or three percent, because we'll
just get back into the situation we were where all
of a sudden we have to go up to an
affordable I.
Speaker 2 (07:07):
Know you spent some time overseas. Did you Was that
purely rest and relaxation or did you have a long
hard look at what was happening over there?
Speaker 3 (07:16):
It was purely relaxation. But whenever I go overseas, I'm
always looking and seeing. But I think more importantly we're
a member of Leading Real Estate Companies of the World
organization with bartrom Thompson and we get to hear what's
happening around the world. And I think that the most
important thing I saw was when COVID came all real
(07:38):
estate around the world came back to a flat bottom period.
And since then we're starting to see movements from the US,
from China, from the Europe, UK, etc. And New Zealand's actually,
if I could say, almost slightly six months ahead than
(07:58):
many of those other countries. And I think that just
shows where people see New Zealand real estate as a
very good investment. Yeah, I've got good positive signs, but
we do have to be aware of what's happening in
the world at the moment. With these walls that are
going on, they can have an impact, specially if they
get bigger.
Speaker 2 (08:19):
Nice to talk Peter, as always Peter Thompson, barf and
Thompson Managing Director.
Speaker 1 (08:24):
For more from carry Wood and Mornings, listen live to
news Talks. It'd be from nine am weekdays, or follow
the podcast on iHeartRadio.
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