Is the New Zealand Property Market starting to cool off?
There has been a shift in the property market, with signs of recovery starting to emerge…so what does this mean for those looking to get on the property ladder?
Experts say that in the last couple of months the housing market has weakened, which will alleviate some pressure and give some much-needed hope to home buyers. One of the most notable changes is regarding average housing values; with several areas of New Zealand either having a direct decline or a reduction in the rate of growth, in regard to average values.
So why this change? This has been forced by a number of factors including the tightening of rules around borrowing, the increase to the cost of living (and take-home income), plus the recent increases we are seeing to interest rates. All of this means the number of buyers out there who are able, or willing to pay recent prices, has reduced.
For those trying to sell a property, they may notice that it is taking a longer time to sell their property and they may have to reduce the price, in order to sell it. For buyers on the other hand, they are now in a much stronger negotiating position than they have been for quite a while. If you’ve been considering buying property and in recent times it didn’t seem possible, now would be a good time to understand your borrowing capacity and what options are available.
While the housing market historically goes up and down, the next little while may be your chance to get into property as some of the power returns to buyers. Securing a ‘bargain’ or putting in an offer you would never have dreamed of doing a few months ago, may be possible.
If you’re interested in getting onto the property ladder, or purchasing another or a second home, please get in touch with our team. We can guide you through the process and talk you through the options available for you and your situation.