- Real estate agents are taking side jobs and selling possessions during a severe property downturn.
- Licensed salespeople rose to 12,850, but 3012 licences are inactive.
- Lower prices, fewer listings and cautious buyers have squeezed commissions and delayed sales.
Real estate agents are delivering Uber Eats, working as concierges, cutting hair, booking flights and selling off personal possessions to fight for survival in New Zealand’s biggest and longest property market downturn in nearly 50 years.
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Ray White Glenfield agent Kristina Walsh said she had her best year in the 12 months to June, but she hasn’t sold a single house since then.
“Short answer, it’s shit. It’s really, really tough. Even people who have been in the market 30 years are having trouble,” she told OneRoof.
“I thought about selling pictures of my feet ... for about five minutes, but they aren’t pretty enough.
“There’s apparently a market for feet pictures if you are squishing them into custard. People are weird, right?”
Right now, she says she’s running out of options.
“If I don’t make a sale soon, I might have to call it quits. I’m struggling to pay my mortgage,” Walsh said.
She’s been organising cocktail parties and selling off project cars to keep money coming in, but may need more regular work to stay afloat.
“I’m going to at least have to look at getting a part-time job at Bunnings or something,” she said.
Yet the number of people licensed to sell houses is rising.
There are now 12,850 licensed salespeople, 425 more than a year ago, and 723 more than two years ago.
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At the same time, nearly one in five licensed salespeople aren’t working in the industry, with 3012 salesperson licences inactive. Those still working are averaging roughly five residential sales a year each.
However, the sales aren’t evenly spread.
One agent told OneRoof he had spent 12 months in the industry without making a sale. He’s delivering Uber Eats to help cover the cost of petrol while chasing work.
There are also fewer houses to sell than in 2021 and lower house prices mean smaller commissions.
Ray White Glenfield agent Kristina Walsh: "It’s really, really tough. Even people who have been in the market 30 years are having trouble." Photo / OneRoof
One Agency Auckland Central owner Moritz Muck: “I think some of them watch a bit too much Bravo Shahs of Sunset, where agents swan into the office at noon and grab a quick coffee.” Photo / OneRoof
Another agent entered the industry during the downturn in a bid to prove he could make it.
“I’m stubborn. If I can make it in the tough times, I’ll do well in the good times,” he said.
Four months in, he’s working 20 hours a week as a concierge to pay the bills while he builds his business.
One Agency Auckland Central owner Moritz Muck was an agent during the global financial crisis and is no stranger to property cycles.
“I used to work in an office at the time where even top salespeople ended up having to drive a taxi after hours for a year or two until things picked up.
“Right now, it feels worse than ‘08,” he said.
REINZ said agents were having to work harder as cautious buyers took longer to make decisions, although some regions were showing signs of improvement.
Economist Tony Alexander said buyers still held most of the cards, investors were scarce, and buyers were taking their time before making a move.
For Wellington-based Alman Avallone, running a real estate business now means being more than a boss.
“There are elements there of trying to be a bit of a counsellor and a motivator. Every week I hear from one of the agents they say they are depressed and wondering where the next sale is coming from,” the One Agency Select Realty owner said.
Muck said some people don’t realise what they are signing up for.
“I think some of them watch a bit too much Bravo Shahs of Sunset, where agents swan into the office at noon and grab a quick coffee,” he said.
Being good at one job doesn't necessarily make you good at real estate, he said.
“You may be the best mechanic in the world, but it doesn’t mean you’re going to be a good salesperson,” Muck said.
Walsh isn’t new to the industry. Her parents were real estate agents in the 1990s, and she has been successful herself.
She isn’t giving up.
“I’m a solo mum, I’ve got no child support, no support from the government, and I’m still here.
“I don’t have a Plan B, and I never have, so you’ll have to drag me away kicking and screaming,” she said.
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