Media can send real estate into nose dive

A new study reveals that the media's influence on real estate trends is immediate and significant.


The website realestate.co.nz monitored seven websites over two years from January 2006 until the end of April this year to gauge buyer and seller behaviour. It found that a series of negative headlines can send interest in property buying into a nose dive.


Chief executive Alistair Helm says the most dramatic data shows the steep fall-off in traffic to websites in the middle of February this year which coincides with media stories predicting a 20 to 30 percent correction in property prices. Mr Helm says website traffic clearly shows that the market was spooked by headlines such as 'Property Market Set to Crash Says Expert' and 'House Sale Low is Sign the Tumble has Started.'


The study also revealed a significant drop off in the number of new houses being listed for sale from early March and the total number of listings remaining static during that month, which probably indicates a combination of property being withdrawn from sale and owners reluctant to enter a very slow market.


Mr Helm says buying a home is the most expensive purchase most people will ever make and it is one that is fraught with uncertainty and complexity. He says given the size of the industry, the extent of the media's influence is a wake-up call.


?Perhaps it is time the industry began to provide its own media and look at directly connecting with customers by way of blog and email alerts and being more open with the major media by providing regular and expert insight into the state of the market.?


Realestate.co.nz says the Real Estate Industry turned over $34 billion in the past 12 months, transacted by over 16,000 agents. The country's real estate asset base is valued at $420 billion.