New survey reveals growing confidence among Kiwis
A recent survey conducted by Trade Me Property, involving more than 1,500 Kiwis, revealed a cautious yet notable shift in buyer and seller mindsets as the property market gears up for spring.
The report highlighted evolving perceptions of value between buyers and sellers, indicating potential opportunities and obstacles in the current market landscape.
Overall market outlook for spring 2024
As prices decline and property listings rise, vendors are adjusting their price expectations. Despite the challenges, confidence is slowly returning, with 53% of Kiwis believing it’s a good time to buy.
However, only 23.6% of buyers report finding sufficient properties within their budgets.
This suggests that while more homes are available at certain price points, sellers may need to consider pricing strategies to enhance marketability, Trade Me Property reported.
Impact of interest rates on buyer confidence
Interest rates play a significant role in buyer sentiment.
“Mortgage rates staying the same or going down will likely have a reasonably significant impact on buyer confidence,” the Trade Me Property survey indicated.
This trend may also facilitate pricing discussions for sellers.
A gap in perceived value between buyers and sellers
Buyers are increasingly focused on affordability and the quality of available properties.
Conversely, sellers are concerned about achieving their desired sale price and the time it may take.
Notably, 60.2% of sellers are willing to wait – whether on or off the market – to secure the price they want. This reluctance to compromise may lead to tougher negotiations, with agents stepping in to help clarify expectations on both sides.
Buyer vs. seller value perceptions
Buyers are prioritising transparency about the properties they’re considering, likely due to tighter finances.
Compromise on property condition ranks next for buyers at 33.7%. Sellers, however, believe that property size is crucial for a successful sale, coming second only to location.
Gavin Lloyd (pictured above), Trade Me Property customer director, advises buyers to “get really clear on what you will and will not compromise on and speak candidly to a trusted real estate agent who can help you with your search.”
The springtime opportunity
As buyer and seller confidence begins to grow amid stabilising economic conditions, the ongoing affordability issues continue to shape behavior. The existing gap in expectations can create challenges, but agents are uniquely positioned to bridge this divide by offering valuable insights and guidance to support both parties on their property journeys.
