The coming weeks represent a period of interest rate stability, realtor says
The New Zealand property market is softer and slower this summer. Nonetheless, Century 21 New Zealand’s offices across the country “are reporting some stabilisation as well as pockets of positive results.”
This was according to C21NZ owner Tim Kearins (pictured above), whose comments follow the release of REINZ’s Monthly Property Report for December – a month which saw median house prices across the country dip 12.2% annually to $790,000. That’s down from $900,000 in December 2021 and down 2.2% month-on-month from November.
“If you’re a prospective vendor, don’t write off selling this summer,” he said. “Plenty of good properties are still making good money, Kiwis always need to shift, and buyers are busy trying to lock in a mortgage rate before the Reserve Bank has another review in late February.”
In the Reserve Bank’s last review in November, it lifted the OCR by 75 basis points, taking it to 4.25% — its highest level since 2008. It predicted the OCR will peak at 5.5% this year.
“Prices continue to ease but the pace of the decline is slower, and the market has settled at its new pace…” REINZ said. “Salespeople around the country say sellers are tending to be more realistic and will usually meet the market through negotiation – although it’s taking longer to sell, sellers are still getting results.”
REINZ data also showed the number of residential property sales decreased nationally month-on-month by 23.6% and was down 39% compared to December 2021.
“Vendors also need to weigh up the Reserve Bank’s talk of a recession, a likely winter of discontent, followed by a general election which halts a lot of activity,” Kearins said. “This summer is arguably the best opportunity for both buyers and sellers to make a reasonably positive move in the foreseeable future.”
Kearins said that with the next OCR decision not until Feb. 22, the coming weeks represent a period of interest rate stability.
“Also helping buyers is that vendors are getting more realistic, with significantly more stock for buyers to choose from,” he said. “Vendors are dead keen to sell up and not go into autumn with a faded ‘for sale’ sign on their front fence. At the same time, buyers are keen to lock in an interest rate while they’re still manageable and securing finance is still achievable.”
At the end of December, 26,057 properties were available for sale across New Zealand — that’s a 55.3% increase in inventory annually.
“If you’re contemplating buying or selling, a good real estate agent will tell you where the opportunities are this summer. Don’t leave your run too late,” Kearins said.
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