A new survey of New Zealand’s property market shows buyers are returning after a prolonged absence because of interest rate rises.
However, they’re not making any quick decisions.
More than half of agents (57%) have noted an increase in prospective buyers at open homes, according to the latest New Zealand Home Loans (NZHL) Property Report.
A quarter of agents (26%) said prices were ticking up in their areas.
A similar percentage (23%) believed they had witnessed buyers exhibiting FOMO behaviour (fear of missing out).
Nearly a quarter of agents (22%) said attendance at their auctions was higher since the end of last year.
Report author, economist Tony Alexander, noted an increase in buyers in Hawke’s Bay, Manawatu-Wanganui, Wellington and Queenstown.
However, most buyers were cautious and sometimes stood back for fear of overpaying market value.
Another positive sign for the market is increasing interest from homeowners requesting to have their property appraised.
Three-quarters (76%) of agents said they had noted a rise in demand for this medium-term indicator of market health.
The report noted first-home buyers were back in the market in good numbers, but investors appeared reluctant.
Overseas buyers are a different story. According to Mr Alexander, only 8% of agents said they’d seen a drop-off in offshore inquiries.