We are in the Spring! And Daylight saving is just around the corner (29th September)! How does this affect the housing market on the North Shore?
We are seeing more active buyers coming through open homes. While earlier in the year, buyers seemed to be ‘speculating’ for further housing price drops and taking a more-or-less ‘observational’ stand, real estate agents are definitely seeing more buying actions happening now. What changed?
- Low stock, high demand – For the month August, a total of 260 real estate transactions occurred, which was the second lowest August volumes this century, just ahead of 2008 during the Global Financial Crisis, according to the latest market update from Harcourts Cooper & Co. However, even with a reduction in sales, sale prices has been going upward since April this year, which suggests an increase of activity and confidence in the market.
- Low interest rates – BNZ just advertised an interest of 3.54% for 2 years fixed (https://www.interest.co.nz/personal-finance/101688/another-mortgage-major-trims-key-mortgage-rate-even-if-it-not-huge-cut-it). This is the lowest I have seen in years! An insider source also revealed that China Construction Bank is offering 3.19% up to 3 years fixed term, for a limited time only. While I am not a mortgage advisor, I know that this gets enough buyers excited.
- Continuous Net Migration Gain – Stats NZ estimates that in the year to July 2019 there was a net migration gain of 52,722 compared with 48,709 for the 12 months to July 2018 (https://www.interest.co.nz/news/101628/statistics-nz-estimates-new-zealands-net-migration-gain-increased-over-8-july-year-when) Total population in New Zealand 2019 is around 4.9 million according to Stats NZ while about 1/3 of them reside in Auckland as per NewsHub.
In summary, this timing opens up an opportunity to list your property with less competition!
Here is my advice: Talk to your trusted agent now if you are thinking about selling. Finding solutions now may work out more efficiently and happily for you rather than waiting for a change in the market. From what we can see, the market has changed from where it was 6 months ago. If you still have doubts, simply ask for a Comparable Market Analysis (CMA) from your agent and understand what your house could sell for at the moment. Take it step-by-step, as you should!