Property market returning to equilibrium
After the property market boomed in 2021 and started cooling in the first half of 2022, it now appears to have stabilised, according to realestate.co.nz.
Spokesperson Vanessa Williams said that, for most regions, average asking prices in June were relatively flat compared to May, with no sign of a bursting bubble. She also said the data is telling a much more positive story than the doom-and-gloom headlines might suggest.
That said, buyer demand today is much lower than last year – with one big reason being the significant increase in seller supply.
“During June last year, we saw all-time asking price highs in 15 of 19 regions plus record stock shortages across the country. As a result, there was a lot of urgency in the market with demand significantly exceeding supply," Ms Williams said.
However, the balance has now shifted, with the number of for-sale homes 89.5% higher in June 2022 than June 2021.
“With stock almost tripling in some regions, this is a good time for property seekers. More choice increases a buyer’s chance of finding the perfect property, and we hear from agents that buyers have more breathing room to peruse in the current market.”
Play the long game
Ms Williams said that while short-term downturns are inevitable, it’s important to take a long-term view with property.
“Fifteen years of data doesn’t lie. Long-term, average asking prices have only followed an increasing trend – irrespective of recessions, interest rate fluctuations and even a pandemic,” she said.
“In June 2007, the national average asking price was $419,317. It’s now more than double that at $961,512,” she said.
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