Owners waiting for prices to return to their peak of more than two years ago before selling will need to be patient, but the market is improving, and now may be a good time to act.
Value projections for the New Zealand market suggest we’ll have to wait until the third quarter of 2025 before average median prices return to the high of $1.098 million achieved in February 2022
While this may seem a little way off, the good news is that prices are now starting to recover.
The latest OneRoof-Valocity House Value Index shows values 1% higher in the three months to the end of February.
In the bellwether market of Auckland, the market continues to be challenging. Quarterly value growth was just 0.2%, a significant deceleration from the 2.5% achieved in the three months to December.
However, there was better news on the West Coast with values rising 4.7% in the three months to February. The number of homes coming onto the market is also up – a great sign for buyers.
Total residential listings on the website OneRoof were up 9.8% year-on-year for February.
As an experienced agency in your area, our agents are seeing increasing buyer interest despite the Bank of New Zealand failing to give clear guidance on its rate direction and the timing of any reduction in the Official Cash Rate (OCR).
However, the pace of recovery is conservative. Our agents believe this is due to the cost of living crisis and planned debt-to-income ratios to be placed on lending rules to try to dampen any future boom-bust cycle.
Below, we’ve listed some key considerations as you prepare to put your home on the market.
Local market – Talk to trusted agents about price trends and buyer behaviours in your area to help guide your decision.
Timing – Trying to time the market is a dangerous game. By the time you realise the market has moved, it’s probably too late. If you’re planning to upgrade, consider making your move now to avoid the inevitable price rises once interest rates start coming down.
Cash position – Check your financial position. Confirm the equity in your current mortgage and debt position before seeking to either extend the term of your loan or increase it.
Key asset – In any real estate transaction, your home will be the key asset. So, ask a local agent to appraise its value now so even if you decide to sell later, you’ve something to compare to. We’d be happy to assist!
Pricing strategy – Never go into the real estate market as a seller without a pricing strategy. You’ll need to settle on a price that meets the market, or your home will languish on listings and risk ultimately losing value. Flexibility is the key for any motivated seller.
If we can help you sell your property, please do not hesitate to contact us. We can discuss price trends and marketing initiatives to maximise the value of your home.