Even as the Reserve Bank of New Zealand retains interest rates at a stubbornly high 5.25%, the momentum of the real estate market is swinging towards the buyers.
More than 40,000 homes are now for sale across New Zealand, an annual increase of 13.5%, according to the latest OneRoof-Valocity House Value Index.
New listings for March were up 36% compared with the corresponding month last year.
In Auckland, which is seen as the bellwether market for NZ property, the spike is even more dramatic at 48%.
As an experienced agency in your area, we can see how the increased number of properties on the market can give buyers a little more time to consider their prospective purchases.
However, it doesn’t mean that prices are dropping. We are not seeing more than the usual number of distressed or forced sales that are usually due to death or divorce.
While prices are not rising substantially right now, sellers don’t feel a need to cut a deal with a discount.
Values are up year-on-year in 60% of the country’s suburbs, according to the OneRoof survey. Of our regions, only Bay of Plenty and Gisborne saw prices dip in the first quarter of this year. Auckland was flat with an average price of $1.33 million.
Canterbury suburbs, such as Merivale and Fendalton, continue to attract demand. Year-on-year, Merivale’s average values have jumped $252,000 to $1.594m.
OneRoof says values are up year-on-year in 481 New Zealand suburbs. The best-performing metro areas are Christchurch and Queenstown-Lakes.
These Top 6 Tips may be helpful if you are looking to buy at the moment.
Take Your Time
With more properties available and less competition from other buyers, you have the luxury of time. Use this opportunity to widen your search.
Tough talk
The current market doesn’t mean you can be overly aggressive in negotiation. Sellers are prepared to wait for the right offer. If you find a desirable property, make a fair-value offer. Avoid low-balling unless you really don’t care whether you win the property or not.
Motivated sellers
Finding out why a seller is on the move is a smart strategy. This information can help inform your buying strategy and the amount you may have to offer to be successful. Remember, all information is important.
Cash talks
It’s always a good idea to organise a pre-approved loan before seeking out properties. Even in a buyer’s market, desirable homes will get snapped up quickly. So, don’t dawdle if you find the home of your dreams.
Inspect what you expect
A thorough building inspection will allow you to determine how much renovation or maintenance a home requires. With this knowledge, you are in a powerful position to fairly negotiate the best possible price.
Future values
A property might be a good buy today, but you should always consider how its value will appreciate over a five to 10-year period. Investing in an up-and-coming area will yield significant returns once the market rebounds.