Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

Sales volume slump looks worse than it should

Posted by Steve Koerber on April 3, 2008

Today’s headline news:  Sales fall 56.2%…

Barfoot and Thompson said sales volumes fell to 632 in March 2008 from 1,444 in March 2007.

While this is a big drop in sales numbers, a more balanced perspective would be gained by calculating the average number of sales per month for the past 12 months, versus the 632 figure.  The drop (on average) would then be more like 10% – 15% I think.

My Remuera branch set a B&T all time sales record in March 2007, selling over $90,000,000 worth of property.  The number of sales (I don’t have the exact numbers in front of me) were extraordinarily high for that month.  From memory, throughout the industry, sales numbers for March 2007 were also very high.

This unusually bullish result amplifies this apparent “crash”.  I don’t think the evidence, when viewed from this perspective, indicates a crash.  But with so much negativity out there the sensationalists might make a crash become a self fulfilling prophecy.  Hold on tight!


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