October Property Bounce Bodes Well For Summer
“Despite some officials in Wellington doing their best to talk down the real estate market, it remains incredibly strong with summer now looking decidedly up,” says Tim Kearins, Owner of Century 21 New Zealand.
His comments follow REINZ releasing its Monthly Property Report for October – a month which saw median house prices across New Zealand increase by 23.4% to $895,000 compared to the same time last year. Ten out of 16 regions reached median price records, and one had an equal price record — the most since March 2021.
“The lack of supply, high demand, and relatively low interest rates continue to drive price increases, with buyer FOMO also contributing to this healthy spring bounce. Let’s just say those who may have been waiting for a price fall have stopped waiting,” says Mr Kearins.
The Century 21 leader says most notably the month-to-month national median house price increased by 3.3%, after it decreased the previous month.
The challenge for the sector now, he says, is to increase listings. The total number of properties available for sale in New Zealand was down by 16.1% compared to October last year, although up from September.
“With it feeling more and more like summer, we will see the number of property listings start to lift. It all bodes well for a strong real estate season, despite the pandemic, lockdowns, and ongoing restrictions,” says Mr Kearins.
Despite REINZ reporting the number of residential property sales across New Zealand was down by 21.7% compared to last October, but significantly up from September, Century 21’s salespeople have enjoyed phenomenal success this spring, delivering great results for buyers and sellers alike.
“Residential property in New Zealand continues to be a preferred place for investment for Kiwis, with first-home buyers also keen to lock in a low interest rate while they can. Ongoing high rents are also motivating many to make the switch to property ownership,” he says.
Early last month, the Reserve Bank lifted the Official Cash Rate by 25 basis-points to 0.50% - the first OCR hike by the central bank in over seven years. Interest rates remain low, with all eyes on the next OCR review on 24 November.
“If you can stump up a deposit and prove your ability to service a mortgage, now’s the time to buy as lending will only get more expensive and harder to obtain,” says Tim Kearins.