Popular regions around New Zealand are starting to experience a shortage of properties for sale; and that may be a positive sign for owners debating whether they should sell in the current market.
Dramatic shortages are being reported in Gisborne and Hawke’s Bay, where the number of homes for sale is down 62% for houses and 24% in apartments compared with 12 months ago.
It’s becoming a national problem. New listings were down almost 10% compared with June 2022, according to the real estate website, OneRoof.
Our biggest city, Auckland, and the capital, Wellington, suffered 21% and 17% drops respectively. Eleven out of 15 regions are said to have listings at least 15% below last year’s levels.
This trend is not unique to NZ. The number of homes coming onto the markets in the United States and Australia are down 20% on their 10-year averages.
A supply shortage and continuing demand is likely to bolster prices. And we’re increasingly seeing buyers competing for properties and pushing up prices.
Selling now may be wise, as you’d avoid a predicted summer rebound when many owners will make their move.
These tips will help you with selling in the current market conditions.
Keep talking
Check in with trusted agents about our local market. Even though NZ is technically in a recession, demand is now outstripping supply locally. Quiz agents on price trends and the average time it takes to sell a home.
Your situation
Evaluate your financial situation, including equity position, mortgage balance, and buying and selling costs. Will you need to change your mortgage deal, and possibly pay a higher interest rate, if you have to refinance? Look at all the angles.
Timing
Trying to second-guess the market is a fool’s errand. And while you may weigh up current trends against what may happen six months down the track, it’s safest to sell when it suits your personal circumstances.
Reality check
Be realistic about the value of your property and price it competitively. Buyers may be keen, but they’re not crazy. Greedy vendors usually get a cold shoulder.
Be diligent
Pristine properties always find a buyer. So, work diligently preparing your home before it goes on the market. This will give you the best possible chance of igniting buyer interest and maximising the value of your home.