NZ Real Estate Market Update: Is It The Good Time To Sell/Buy House In New Zealand?

New Zealand real estate market is witnessing a slowdown, and prices across the country are reported to be falling. This time, it has been predicted that the drop in prices would be the greatest in the last 30 years.

The rise in interest rates is seen as one of the major causes for the decline. New Zealand housing market is one of the most unpredictable markets at the moment. Every month seemed to bring the rise with it. However, when the Reserve Bank raised the official cash rate to 4.25%, the other factors along with cash rate caused the pressure on housing market to crash. The house price index saw the largest drop of 30 years this October which is 10.9%.

Owing to this, the selling activities have softened considerably. At the same time, the buyers are curious to know if this is the right time to buy. Economists have forecasted the house prices to plummet further by 20%, which were expected to decrease by 30% in 2021 peak. The prices were at high during the pandemic. They rose to 40% just before the November of last year while the central bank giving the hint of unsustainability of these rates in times ahead.

It is expected that interest rates are expected to go even more higher. This would considerably bring down the house price index converting the gains of the sellers into losses while making this an opportunity for buyers.

New Zealand Housing Market Updates: Changing Demand and Supply Dynamics

Median house prices across the country have decreased 7.5% annually. Four regions saw the annual increase in the median price in October, the highest record was made by Marlborough that reached up to 20.7%. While Auckland median price saw the sharpest fall of 12.7% annually during the same month. The median price dropped 18.2% for all the seven districts and the eight Territorial Authorities saw the drop of 33.7%.

This situation has definitely brought the uncertainty and the hesitancy but market is also witnessing increased enquiries by first home buyers.