The New Zealand Housing market upturn is evident in the most recent three months of 2023, giving homeowners, investors and possible buyers hope.
We discuss the key indicators of a housing market upturn here in New Zealand. This change is shown by a number of important signs, including more homes for sale, faster sales, more first-time buyers, more investors interested in the market and higher property prices.
Key Indicators of Housing Recovery
As market dynamics evolve, key indicators point towards positive changes. These include:
More sales listings, show demand is growing:
The rise in the number of homes listed shows that people are feeling more confident about selling and that buyer demand is growing. However, even though the pace is a little slower than the previous five-year average, REINZ CEO (Jen Baird) says that sales have gotten a lot better, which shows that sellers are more confident now that the election is over.
- More homes are listed for sale after an election because people are more confident.
- Both buyers and sellers are confident, which improves the market.
Less time on the market, indicating more competition
According to the October 2023 REINZ Property reports, the average time a property is on the market has gone down by 7 days, to 37 days in total. This means that buyers are more interested and there is more competition out there.
More activity from first home buyers
These buyers are very important for keeping the market going strong. According to data from the Reserve Bank of New Zealand, there has been a big increase in first home buyers, who made up almost 25% of all property sales, in September 2023.
Interest from investors is growing
Interest from investors is also a key driver, and the return of interest deductibility could bring in even more investors. Real estate agents say that both investors and first home buyers are asking more questions. Investors are more interested, which shows that they are confident in the possible returns and will enhance the New Zealand Housing market upturn.
Property Values Going Up
Property values going up is a clear sign that the property market is recovering. The latest QV House Price Index, shows that the average value of homes, went up by 2.1% in the three months ending in October 2023. This shows that the market is getting stronger.
Potential Opportunities for Property Investors
New Zealand real estate investors may be able to take advantage of expected changes in government policy. Some of these are a revised Brightline Test, a possible loosening of the Foreign Buyer Ban, and the ability to deduct interest again by April 1, 2026.
Strategic Approaches for Sellers, in a rising market
If you’re thinking about selling in this changing market, strategic approaches can help you get the best results. Some important strategies are:
- Setting the right price,
- Showing off the unique features of the house,
- Making decisions quickly, and
- Getting help from experienced real estate agents.
Because more buyers want to buy, the market is turning!
Opportunities for First-Time Home Buyers
If you are a first-time home buyer thinking about getting into the market, it is very important that you get ready. Preparation is crucial for first home buyers.
- Understanding the buying process, obtaining pre-approval and thorough research are all essential steps.
- Collaboration with experienced Mortgage Brokers can enhance preparedness.
The NZ housing market upturn, final thoughts:
- The New Zealand real estate market is signaling a move towards positivity and expansion.
- So whether its the encouraging signs of a housing upswing, potential investment opportunities, or the resurgence of first time buyers, the market remains dynamic.
- Key success factors include remaining aware of evolving conditions and seeking expert advice.
- Both buyers and sellers, stand to gain from a strategic and well-informed approach when navigating this dynamic environment.
Contact Platinum Mortgages experts today to help guide you!