The Problem in 2018 – Too Many Agents, Not Enough Homes for Sale
Auckland alone has 6515 real estate agents. That’s 44% of the total number of active agents around New Zealand! With one agent for every 250 people in the city, the competition is bound to get fierce.
However, Auckland is not alone, districts like Tauranga, Hamilton and Queenstown amongst others have all witnessed an increase in the number of REAA licences holders.
On the other hand, the residential housing market has slowed down considerably, which has also caused a decline in work (listings) for agents. Many real estate agents have left or are considering leaving the industry as they realise that it is getting harder to secure listings. Even worse, for some, the time invested in the process has negatively affected their personal lives and relationships.
According to Seek – an online employment portal, opportunities in the real estate sector dropped by 27% in 2018’s second quarter while the availability of candidates rose by 30%.
The Real Estate Authority released statistics under the Official Information Act which showed a drop of 6% in the number of license applications in 2017. We are now well into 2018 and the numbers still seem to be on a downward trend.
Considering the repressed growth of the New Zealand property market coupled with the overwhelming number of real estate agents in the area, increased competition for listings is well and truly evident. Although the recent REINZ report showed that Augst 2018 has seen an increase in property prices, sellers are still holding out and there is a lot of uncertainty.
One former agent in this article by Stuff NZ also had this advice – “choose to work in the commercial sector as there are less fluctuations than the residential sector.”
A Solution – Using Online Marketing to Secure Listings
Firstly, we don’t think you need to switch to commercial. While other agents are panicking, you can be investing to reap what you sow.
You can always persist in the market until the market bounces back up; this can be in anywhere from a year to 10 years from now. And is dependent on if you have the savings to get you through.
A wise solution would be to think outside of the box and niche down not only in a particular suburb or town but also in your efforts to get listings.
There is no point in trying to advertise here, there and everywhere.
Utilise the internet and social media and the effectiveness of retargeting to market yourself and your expertise to the right people at the right time.
When it comes to digital marketing for real estate agents, we have the skills and experience to get you there. Schedule a 15 minute discovery call here to see if you qualify for our lead generation programme.
Also comment below with your current experiences in the market while prospecting and your methods being used.