Home buyers have entered 2023 on an optimistic note with the latest national research revealing that homes are becoming increasingly affordable.
National values dipped 3.4% in the quarter ending December 31, according to the new OneRoof Valocity House Value Index.
And that can be good news, too, for owners looking to upgrade their property. Upsizers should gain a greater dollar-discount on their new home than any anticipated reduction in price for their existing property. Falling values not only help new buyers but also existing owners looking to climb the property ladder.
The latest fall is the equivalent of $35,000, according to the OneRoof report.
Only two NZ regions avoided declines: the West Coast (+3.2%) and Southland (+2.1%). The areas that gained most from the recent price boom, Auckland and Greater Wellington, saw prices come down again by 4.1% and 6.7% respectively.
Auckland house prices are now an average $186,000 cheaper than at the peak of the boom.
While this national report is an excellent commentary, buyers and sellers should remember to focus on the performance of areas specific to their interest.
These tips may help if you are thinking of buying:
Be Disciplined
Restrict your research to relevant properties. Don’t fall into the trap of comparing a mid-tier three-bedroom family home with a mansion just around the corner. Lumping together every local result will give you an inaccurate picture for your needs.
Talk to agents
Good agents will talk to you about not just the local price trends but cite specific sales results that are relevant to your style and size of property.
Make preparations
If you’re diving into the research, you should start to think about preparing your property for sale. This isn’t an overnight task. Homes in premium condition remain in big demand. They often sell for more, and get a faster result.
Seek an appraisal
It doesn’t do any harm to ask an agent to appraise the value of your home. The agent will tell you what they think they can sell it for, based on recent results. Don’t be afraid to ask them to justify that estimate. Also, seek their advice on any improvements to your property that might add value.
Money matters
Begin preliminary discussions with a broker or your bank about refinancing or a new loan. Chances are, lenders will have changed their risk-tolerance and mortgage products since you last applied for a loan. Don’t try to work out a potential loan size at the kitchen table. Use the experts.