Latest Stats Show Housing Market Holding Up Well

“Things are definitely gearing up for a relatively strong summer and perhaps an opportune time for many Kiwis to take action,” says Tim Kearins, Owner of Century 21 New Zealand.

Tim Kearins

His comments follow REINZ releasing its Monthly Property Report for November – a month which saw median house prices across New Zealand increase by 23.8% to $925,000 compared to the same time last year – a new record high.

“Interest rate rises are yet to put buyers off. Rather, they’re motivating them to get in sooner rather than later. People can either buy and set their interest rate at say 4.5% or wait and possibly pay 6% down the track. That would mean 33.3% more in interest repayments,” says Mr Kearins.

The median property price in Auckland increased 26.2% annually to $1,300,000 in November 2021 — another record median. REINZ’s latest headline, however, notes that while prices continue to rise, the ‘growth rate shows signs of easing’.

“We may be moving to a more sustainable place when it comes to price increases, but a lack of supply, high demand, and relatively low interest rates will continue for some time. We’re also looking forward to a post-lockdown activity lift this summer as more people get out and about and make decisions,” he says.

“The next Official Cash Rate announcement is not until 23 February, so perhaps the next two months will prove the best time for first and next home buyers to get locked in. With rents now sky high, there’s certainly an opportunity for young Kiwis to take the plunge if they can pull together a deposit and prove their ability to service a mortgage,” he says.

The Century 21 leader says for as long as paying a mortgage remains comparable, or even cheaper, than paying rent, buying will remain an attractive option, with the New Zealand property market a proven long-term investment.

“Lending will only get tighter and more expensive, and with uncertainty hanging over 2022, this coming summer could well be the sweet spot for buyers and selling alike,” says Tim Kearins.

www.century21.co.nz

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