NZ property market trends
Economist Tony Alexander (pictured above) presented the latest insights from licensed real estate agents across New Zealand on residential property market conditions, with this month’s survey garnering 319 responses.
Open homes show increased activity
More people are attending open homes, although auction attendance remains relatively quiet.
“A net 11% of agents have reported that more people are attending open homes,” Alexander said.
This shift is likely due to recent mortgage interest rate cuts and optimistic sentiment regarding monetary policy easing.
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Auction attendance still low
Despite some improvement, auction attendance is still low.
“A net 11% of agents have said that they are seeing fewer people attending auctions,” Alexander said.
This is an improvement from a net 37% last month.
Price trends and FOMO
Agents reported that prices are still falling, although the decline is slowing.
“A net 29% of real estate agents have said that prices are still falling in their location,” Alexander said.
FOMO (fear of missing out) is starting to reappear, with 9% of agents observing this sentiment, an increase from a record low of 1% in June.
First-home buyers and investors
The presence of first-home buyers in the market has slightly increased.
“A net 12% of agents have reported seeing more first home buyers,” Alexander said.
However, the investor market remains subdued, with a net 2% of agents seeing fewer investors, although this is an improvement from last month.
Offshore interest and property appraisals
Offshore interest in New Zealand’s residential real estate remains low.
“A net 23% of agents report receiving fewer offshore enquiries,” Alexander said.
On the other hand, property appraisal requests have increased, indicating a potential rise in supply as demand lifts.
Buyers’ main concerns
Securing finance remains the top concern for buyers, followed by job worries.
“Interest rate concerns have fallen away very strongly this month with just 23% of agents saying buyers are concerned about where rates are headed,” Alexander said.
Job worries, however, persist due to ongoing redundancy reports.
Investor activity and motivations
Investor activity in selling properties has seen a slight increase.
“A net 16% of agents have reported more investor sellers,” Alexander said.
Hopes of finding a bargain and declining interest rates are motivating investor demand.
“48% of agents cite hopes of finding a bargain as a reason for investor purchases,” Alexander said.
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