The New Zealand property market has experienced a bigger downturn in property values and sales volumes than expected in 2022.The introduction of tighter lending regulations, loan-to-value ratio rules, higher mortgage rates, and more listings all tilted the balance of power away from sellers.
For the 2022 calendar year, total sales volumes are estimated to be around 67,000, the lowest since 2010, and the third lowest figure in the past three decades. Data obtained from CoreLogic to date has measured a fall of around -10% from the peak for national average values with the expectation of potentially another -
10% decline in 2023.
The scale of the housing downturn will be diverse across the country, so it’s not surprising to see varying degrees of resilience. Previously buoyant areas such as Porirua, Upper Hutt, and Lower Hutt have become some of the weakest markets in New Zealand, while in contrast, many parts of Canterbury – including Christchurch, Ashburton, and Timaru – have fared a bit better. However nowhere is ever immune to all market forces.
Overall, then, 2022 has been a challenging year for the property market, which would have been worse if employment hadn’t been as strong. Next year, the jobs market will remain vital in limiting the size of price falls and the potential scale of negative equity and/or mortgagee sales.
Now it is not all doom and gloom though it may read as that - Would I buy or sell a house now? Absolutely, as trading on the same market is neutral, you get the same value on the day. If the value or price achieved on yours goes down, then the house you are looking to buy will have also potentially seen the same impact. Thus, making the impact less impactful.
If you want to understand how the current market has affected your home or even if you are doing your homework for a sale in the future. Then give Victoria a call she is happy to help guide you through the process or get you into the position to sell when you are ready. Thinking of doing some renovation and want to know if they will add value then she is your girl.
She is the Key to Your
Next Adventure.