Real estate agents will be breaking out the Champagne after earning what was probably a record amount of residential sales commission in the third quarter of this year.
Interest.co.nz estimates the real estate industry earned around $568 million in gross residential sales commissions over the three months from July to September.
That's a 51% increase on the $376 million the industry is estimated to have earned in residential commissions in the third quarter of last year.
Interest.co.nz has only been estimating the industry's residential commission levels since the second quarter of 2016. The estimated commission figure for the third quarter of this year is the highest it has been in that period (the graph below shows the trend) but it was also likely to have been an all time record.
The strong growth in commission levels in the third quarter was driven by record prices being achieved, which pushed up the value of individual commissions, combined with high sales volumes, giving real estate agencies the best of both worlds.
Growth was particularly strong in the Auckland market where the industry earned an estimated $234 million in gross residential commissions in the third quarter of this year, up 63% compared to the same period of last year.
Around the rest of New Zealand (excluding Auckland), estimated commissions in the third quarter were up by 44% compared to the third quarter of last year.
Although real estate agents may be popping a few corks over the last quarter's results, their celebrations may be tempered by the fact that the outstanding commission levels achieved in the third quarter of this year followed a dismal, lockdown-affected second quarter, when the estimated total commission earned was just $266 million, down by almost a third compared to the same quarter of last year and also the lowest level of commissions earned since interest.co.nz began estimating them in 2016.
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