This summer is probably the best opportunity in the foreseeable future to make a reasonably positive move, realtor says
“As we go into summer, the market will be softer and slower overall, but thankfully we’re now starting to see more activity,” with the latest real estate statistics showing nearly 8% increase in the number of sales nationwide from October to November, said Tim Kearins, owner of Century 21 New Zealand.
Kearins’ comments follow the release of REINZ’s Monthly Property Report for November, which found a 12.4% annual drop in median house prices across New Zealand. At $810,000, the national median house price was down from $925,000 in November 2021, and down 1.2% compared to October.
“Let’s not forget that this is all averages,” Kearins said. “There are still pockets to the contrary. If buyers or sellers want to know what’s happening in their areas and price brackets, we strongly encourage them to talk to a local expert.”
REINZ said buyers are again weighing up the likely impact of falling property prices on mortgage rates.
“Those thinking of selling are again looking at the market and asking, ‘Is this the right time?’ “For many it is the right time,” it said. “In November, people continued to transact — 5,525 according to our sales count.”
Across New Zealand, there were 5,525 residential property sales in November – that’s a 6.1% drop from the same period last year (8,644) and a 7.7% increase month-on-month from October.
Kearins said the Reserve Bank’s open war on inflation has contributed to buyer hesitancy. RBNZ’s latest hike saw the OCR rise by a record 75 basis points to 4.25%, and with a peak of 5.5% forecasted next year.
“The good news is the next OCR decision is not until Feb. 22,” he said. “That means we’re going to see some stability in interest rates in the interim. For many, this summer could be a good time to borrow and buy. Also helping buyers is that property prices have softened, vendors are more realistic, and there’s significantly more stock to choose from.”
At the end of November, 28,449 properties were available for sale across New Zealand — an annual increase of 47.7%.
“For those contemplating listing and selling, they also need to seriously consider acting this summer,” Kearins said. “Buyers are re-emerging, with many keen to lock in an interest rate while they’re still manageable and securing finance is still achievable.
“Vendors also need to weigh up the Reserve Bank’s talk of a recession next year, a likely winter of discontent, followed by a general election which halts a lot of activity. With 2023 set to be an even more challenging year, many buyers and sellers are increasingly viewing this summer as probably the best opportunity in the foreseeable future to make a reasonably positive move.”
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