ZT: Big jump in house sales tipped once vote is over

NewLynnHse

http://www.nzherald.co.nz/proper ... p;objectid=11325930

House sellers and estate agents will breathe a sigh of relief after Saturday's election, which is expected to end a property market lull caused by hesitant buyers sitting back to see how the politics play out.

A general feeling of uncertainty, talk of a capital gains tax and proposed warrant of fitness schemes for rental housing - alongside loan-to-value ratio restrictions on mortgages and the usual winter hiatus - are behind the quiet spell, industry experts say.

Real Estate Institute figures for last month show dwelling sales dropped 7 per cent from the previous month.

The latest monthly QV Residential Price Movement Index shows a continued reduction in transactions and low listings in the Auckland region.

Real Estate Institute chief executive Helen O'Sullivan said the election had played a part in the drop-off.

Westpac senior economist Michael Gordon has talked about "pre-election jitters", and real estate firms Harcourts, Bayleys and Barfoot & Thompson agree.

Every three years, the pace of sales slumped in the 12 weeks before a general election, said Bayleys Real Estate managing director Mike Bayley.

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