The residential real estate industry appears to have had reasonably solid earnings in the September Quarter (Q3) of this year, in spite of the economic headwinds buffeting the residential property market.
Interest.co.nz estimates that New Zealand real estate agencies earned around $476 million in gross residential sales commissions in Q3 this year, up 7.9% compared to Q3 last year.
Those figures exclude income agencies would have earned from other activities, such as property management and auction fees, which would likely have pushed total residential agency earnings well above $500 million for the quarter.
Interest.co.nz estimates agencies would have earned $1.432 billion in gross residential sales commissions in the first nine months of this year, up 13.6% compared to the first nine months of last year.
The improved result this year is mainly a result of a lift in residential property sales numbers.
Interest.co.nz estimates the average residential sales commission in Q3 this year was $24,858, almost unchanged from a year ago.
Although total estimated Q3 commissions were showing solid growth this year, they were still well down from the record Q3 commissions of $557 million in 2020, but well up from the recent low point of $348 million in Q3 2022.
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