Immigration recovery likely to impact property market

The first signs of a turn in fortunes for the property market are starting to appear, giving hope that values might begin to recover this year.

National immigration numbers have quickly reversed their negative trends, which will positively impact demand within the real estate market. 

From losing 16,000 people a year in the Covid aftermath, New Zealand has recovered in less than 12 months, adding 16,000 to the population this year. Media reports also suggest that immigration may grow by 40,000 by the end of the year.

Continuing strength within the jobs market and wages growth will be other influences on a property turnaround and, with employers now reporting labour shortages, it’s likely confidence in job security will eventually stimulate renewed housing demand.

Additionally, the reported difficulties for property developers in obtaining finance for new projects will slow new-home supply. While that might be a short-term stimulus for prices in the established home market, it’s essential there is a strong supply of new homes to achieve a full real estate recovery.

Check out these tips if you are a homeowner considering selling in the current market: 

Be competitive

There’s often more supply than demand, which gives buyers bargaining power. So, your pricing strategy needs to be on the money to attract motivated buyers.

Get it fixed

You’ll fail to maximise the value of your home if you put it on the market when it needs repairs. Buyers will likely want a discount on your asking price to pay for any work that would need to be done.

Stage your home

If your budget will stretch, consider hiring a professional consultant to “stage” your home. They will select furnishings that will put your place in the best light. However, this also means you need to store many of your belongings.

Be flexible

Selling a home requires commitment. You need your home to be ready for prospective buyers at short notice. So, always keep it neat and tidy, and be ready to accept an inspection.

Experience counts

Importantly, work with an agent who has seen these market conditions before. They will help formulate your pricing and negotiation strategy to attract buyers and maximise the market value of your home.