Uncertainty among buyers and sellers about the outcome of the October election has added to the complexity of the New Zealand property market as it begins its value turnaround after a couple of tough years.
Sales volumes dipped across the country in July, notably 15.4% in Auckland, as buyers and sellers wait for the poll outcome and ready themselves for the spring selling season.
The latest Real Estate Institute data suggests sellers are also holding off for warmer weather. The number of properties for sale in July was down 12.4% compared with the corresponding period last year. Only Marlborough bucked this national trend with its listings seeing a 12.5% hike.
A stronger bounce back in seller and buyer activity is likely within the next few weeks as behavior is often tempered with the possibility of a change of government on the horizon. In the scheme of things, it’s only a momentary event.
One Westpac economist told the media that his bank believes the market had found its base and predicted an 8% value hike in the coming months.
Some agents now suggest that the shortage of homes and general commentary about rising prices is causing fear of missing out (FOMO) among many buyers. These tips may help to ease any FOMO anxieties you may have.
It’s only natural
Don’t punish yourself for your FOMO anxieties. It’s a perfectly normal response to your current situation.
Be self-aware
Understand when FOMO grips you, and acknowledge it without judgement.
Say ‘no’
Practise the art of saying no, as this will help prevent you from buying an available property that’s not your dream.
Wrong choice
Buyer’s remorse can be an issue in the current situation. A poor purchase will cost you emotionally and financially if you decide to move on quickly.
Pick priorities
View each property with a list of “must-have” and “nice-to-have” features. Even if you’re in the box seat to purchase, ensure the apartment or house ticks all your boxes.
Reduce the noise
Avoid doom-scrolling. Focus your online time researching your target suburbs and the styles of property within your budget.
Stay grounded
Disappointment is inevitable in all walks of life, including home buying. Try to avoid being caught up in the drama of competition.
JOMO
Some psychologists praise a practice called JOMO – the Joy of Missing Out. By recognising a property was not meant to be, and that something better will be around the corner.
Stick with it
The property market will turn in your favour. The spring selling season isn’t far away, and sellers will emerge when they’re confident they can achieve fair value.