Real Estate Stats Show Property Remains Resilient

“Despite the arrival of Omicron, lending restrictions, rising interest rates and a softening of prices predicted, these latest statistics prove our property market remains relatively resilient,” says Tim Kearins, Owner of Century 21 New Zealand.

His comments follow REINZ releasing its Monthly Property Report for January – a month which saw median house prices across New Zealand up 20.5% compared to the same time last year. REINZ, however, reports ‘a decrease in sales activity and easing of price growth nationwide’.

At $880,000, the national median house price is down from December, yet seasonally adjusted figures indicate prices held up slightly better than what would usually be expected when moving from December to January, showing a 1.4% increase month to month.

“While lower sales volumes show a quieter January, the good news is February was off to a better start. New listings are coming on with real estate activity more noticeable. In fact, right now is providing a good window of opportunity for buyers and sellers alike,” says Mr Kearins.

He says all eyes will be on the Reserve Bank on 23 February as it makes a call on the Official Cash Rate, with the overall consensus being that interest rates will continue to rise.

“February is proving to be a bit of a sweet spot. Many buyers who achieved pre-approval before lending tightened up are motivated to act. First-home buyers want to get in and lock in a good interest rate, and vendors want to sell before the uncertainty of this coming winter,” he says.

The real estate boss is encouraged that the levels of inventory nationwide continue to increase, saying more listings are good for buyers as they allow agents to show them a larger selection of properties.

He says Century 21 salespeople report that most vendors taking the plunge in recent weeks have been pleasantly surprised by the level of interest and the results still being achieved.

“Compared to previous summers the number of residential sales remain down. However, I’m confident that February and March should show sales volumes lifting. In the meantime, there are plenty of good properties still commanding great prices, and let’s not forget that’s after two years of a global pandemic,” says Tim Kearins.

www.century21.co.nz

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