5 Things You Need to Know About the Property Market
Median house prices across the country continue to drop, with the median sale price in Lower Hutt for December 2022 to February 2023 sitting at $750,000, a decrease of 17% compared to a year ago.
Lower Hutt, along with the wider region, has seen some of the biggest price adjustments in the country, so much so it is hard to see them move much lower, if at all. Having said this, buyers are very sensitive about prices, an asking price just $20,000 over the market stops enquiry and offers. The moment a price is in the buyers zone, offers come in, sometimes many offers. The buyers are looking, they know value and act when they see it. The challenge for sellers is finding that spot without under-pricing. This is one of the reasons more owners have been choosing auction as a better method to find that spot, and importantly, finding it before the property becomes ‘stale stock’.
Here are 5 things you need to know about the property market at the moment:
- House prices dropped again. They have fallen again for another month from the historical high of November 2021 but may be near the bottom in price values.
- Activity in the market is starting to pick up. Numbers at open homes, online enquiries and interest from buyers is stronger than it has been for some time, according to Professionals sales agents. Multiple offers on homes are starting to show competition for good properties.
- It's a great time to buy for first home buyers. With investors opting out of the market due to high interest rates or looking to buy new build homes, there has never been less competition for first home buyers. If you are thinking about buying your first home, talk to your bank or your mortgage broker, secure finance and start looking.
- A down market is a great time to trade up. If you are looking to buy and sell in a short period, now is a fantastic time to do so. You can confidently sell and then buy by going into the negotiation as a “cash” buyer in this market. Particularly in a multi offer scenario, you will be a preferred buyer with less conditions on the sale.
- We’re told Interest rates are at or near the top. The OCR has recently increased, and commentary from Adrian Orr is that we are near the peak, and it will stay in this space until inflation comes under control. To make the most of any market it is important to know your buying power. Talk to your bank or, consult a mortgage broker to understand how much capital you have, to give you the best opportunity in any negotiation.
The market is always changing and while our thoughts are with those that have been significantly impacted by Cyclone Gabrielle and as the country rallies around them, the economic impacts won't truly be known for some time. If you are thinking of entering the property market or you need to know what's happening in the market right now, talk to our team at Professionals. They are passionate about our local market, vendors and buyers, and truly want the best outcomes for everyone involved. They know what is happening in the market which, at times like these, can turn on a dime. Get in touch for a free market appraisal on your home, and gain an understanding of its value in this market.
