In another sign that the housing market is heading back to its bullish heights, Harcourts has argued home sellers should avoid putting price tags on their listings and should choose to sell via auction. In an environment where buyers are testing the market, homes with a price tag could stay on the market for a lot longer and potentially achieve less than they would if the market determined the price, Harcourts International Managing Director Mike Green said in a press release. "The current real estate market is rapidly changing, very much impacted on by volatile global economic conditions, and the number of properties being listed for sale is lower than usual too so that's adding another dimension, namely a build-up of demand in some areas," Green said. "Given these circumstances it is particularly difficult for real estate sales professionals to give sellers an accurate appraisal as to what price a home might achieve and so marketing with a price may be unwise." Selling by auction was now the best option, Green added. "Firstly, auction marketing campaigns mean there is no ceiling put on the price and in the end many sellers are very surprised by what the market is willing to pay for their property at or before auction day," he said, adding that auction properties generally sold faster because of the 'sense of urgency involved.' "This urgency is not typically felt where a property is marketed with a price with no timeframe within which a buyer needs to act." What I think
This is a sign that the madness is back. House prices have nothing to do with fundamentals and everything to do with the fear of missing out on the untaxed capital gain. This is a symptom of everything that is wrong with New Zealand's business and investing culture. We believe house prices will always go up and we can trick buyers into paying more than they are able to pay, simply because the bank will always front up with the extra cash in the form of debt. Good luck to you all. What you think? We welcome your comments and insight in the comments below.