For those with school-aged children, we hope you had a refreshing break during New Zealand’s Term 2 holidays, whether it was on snowy slopes or sandy shores abroad! As the second half of winter begins, we trust you are recharged and ready for what’s ahead.
New Zealand’s housing market has certainly experienced its share of ups and downs, with the most recent drop in property prices linked to interest rate rises and cost of living pressures. However, there’s growing evidence to support a property rebound sooner than anticipated. In June 2023, the Real Estate Institute of New Zealand (REINZ) reported a significant 14.6% increase in market activity, with 5,629 properties sold across the country. This rise is partly attributed to the easing of LVR restrictions on 1st June, sparking greater interest from first-home buyers.
While mindful of factors like New Zealand’s pending election and ongoing cost of living challenges, we share this cautious optimism, noting accompanying predictions that the market could see strong interest from property investors anticipating a change in government after the upcoming election.
Buyers choosing to wait for property prices to go lower should consider the impact that decision could have on borrowing power once property prices go up.
At Goodwins, our team diligently monitors sales and rental data to provide you with accurate and meaningful advice for your property needs.
One further trend we have noticed is that vendors opting for auctions are demonstrating a serious commitment to selling, adopting more realistic price expectations that align with the current market conditions.
In closing, we wanted to share that our REINZ CEO, Jen Baird, General Counsel, Melisa Beight, and Head of Residential Property Management, Jo Rae, recently met with Associate Housing Minister, Hon Barbara Edmonds. It was confirmed that the proposed Regulation of Residential Property Managers Bill is on track to be introduced in Parliament next month. While there is no guarantee (and there is limited sitting time left in this term), REINZ continues to advocate strongly for the highly anticipated legislation. We express our sincere gratitude for their efforts in this regard.