Agents report declining activity and rising concerns among buyers
Economist Tony Alexander’s (pictured above) latest NZHL Property Report showed New Zealand’s residential market cooling, as agents noted declining activity and rising employment concerns among buyers.
Key findings include agents observing a buyer retreat from the market due to escalating employment worries, a widespread perception of declining property prices, and a shift in investor activity with more looking to sell than purchase.
Auctions and open homes attendance drops
The survey, drawing on 318 responses, noted the weakest agent-reported auction attendance since January 2023, with a net 26% of agents witnessing reduced turnout. Similarly, open home attendance has fallen, marking the weakest engagement since November 2022.
Prices and FOMO
For the second consecutive month, a net 26% of agents believe prices are falling, the lowest confidence since last May. Additionally, only 7% of agents now think buyers fear missing out on purchases, a significant drop from previous highs.
First-home buyers and investors
While a net 24% of agents saw more first-home buyers entering the market, investor sentiment was neutral, with an equal number of agents reporting an increase and decrease in buying interest.
Offshore enquiries and property appraisals
Offshore buying interest is diminishing, and though property appraisal requests have decreased from previous months, they remain relatively high, indicating continued seller motivation.
Buyer concerns
Top concerns for buyers include finance difficulties and rising interest rates. However, a new worry has emerged: apprehensions about income and employment, contributing to the market’s current weakness.
Investor market dynamics
Investor motivations have shifted, with fewer driven by the prospect of rising house prices. Increasingly, agents reported no specific factors spurring investor demand.
Read the full NZHL Property Report by Alexander here.
For other recent reports by Alexander, click here and here.
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