Positive energy has returned to the New Zealand real estate market with increased buyer interest, more properties listed for sale and a long-awaited upward trend in values.
Whether you’re a buyer, seller, or both, it’s worth spending a little time examining the findings of a recent survey measuring the state of the market.
The House Value Index published by OneRoof and Valocity shows a value increase of 1.7% in the three months to the beginning of November.
Some 566 suburbs transacting 20 properties or more in the last 12 months achieved value growth.
The biggest markets of Auckland and Canterbury are charging ahead, registering 2% increases in the average sales prices. That’s helped drive the average value of a home in New Zealand to $952,000.
So, how should you react to this turn in fortunes?
Upgraders
It’s probably time to start making a plan, if not executing it. On a rising market, the gap between your property and an upgrade will widen, at least theoretically. The risk for you is that if you sell and fail to find a suitable property, the price acceleration could limit your options. So, act quickly and decisively.
Investors
With strong rental incomes being achieved across NZ, you’ll want to move quickly to cash in on the current promise of capital growth. If this recovery takes off and you’re on the sidelines, you may miss the opportunity if you’re seeking capital growth for your portfolio.
Sellers
You’re going to find an increasing number of buyers in the market. Many will be concerned about rising values and seek to make a quick decision. While this offers you an advantage, price your home competitively. If you ask too much, you risk your home languishing on the market, damaging its value potential.
First-time buyers
Double down on your search to find the best opportunities. With rising prices and interest rates still toppy, you’ve got a challenge. Work with agents and stay confident, and you’ll achieve your dream.
Downsizers
As values trend higher, you may achieve an excellent price for your current property, but be aware that smaller homes and apartments may rise even faster. Price pressure for the type of home a downsizer will target will come from investors and first and second-time buyers. So, now isn’t necessarily the time to sit back and relax if you wish to downsize.
NOTE: The information in this article is general in nature and provided as a market overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.