As we approach the end of 2022, many potential home buyers will be wondering how the market will play out over the next 12 months.
Nationally, it’s slipped 2.7% over the past year, at an average of $28,000 for each property. But the performance is pretty erratic. Cities such as Auckland (-5.5%) have taken a haircut, while TAs like Opotiki (+9.7%) are booming.
The average price for a house in New Zealand has stayed over the million-dollar mark, standing at $1.009m, according to the recent OneRoof House Price Report.
That’s a moderate result, especially when taken in the context of two years of double-digit value growth.
If you intend to buy soon, we’d caution against trying to time the market for the best possible deal. Waiting for prices to hit an undefined “rock bottom” is unnecessarily risky. No one knows when that might happen.
As we enter 2023, we recommend you continue to engage in the market, maintain the search for your next home and keep tabs on a likely price for your existing property. These are our top tips for staying in touch with the market:
Suit yourself
The right time to move is when it suits you. Delaying your move for a few thousand dollars will seem pointless in five years. But you won’t so easily forget the dream home that escaped your clutches because of your strategy.
Keep it real
Buyers only make low-ball bids for properties they don’t want. Don’t low-ball, and don’t buy a home you don’t want. If you see your “home to die for”, negotiate like you mean it. Sellers are not so desperate they’ll entertain insulting offers.
Diligent research
Keep watching the sales results for the styles of homes you wish to buy and sell. The market has been lumpy this year. While some areas have fallen, such as Wellington (-13.1%), others have continued to grow.
Cash still king
Even in slower markets, you should still have a preapproved mortgage. If you find yourself in a competitive situation, the sellers will favour the buyer with the cash lined up and won’t wait while you try to raise the money.
Stay in touch
Talk to local agents about the market mood. They’ll be the first people to get the rebound vibe.