This year has had a shaky start with the floods in Auckland then Cyclone Gabrielle. The impact of which has not been truly felt although it is safe to say listings and sales are down in affected areas.
The latest monetary policy committee meeting - one projection of note that did change was the Reserve Bank house price forecast – the peak to tough fall is now expected to be -23% ending in the early to middle 2024 though in truth most of the 23% decrease is likely to occur this year. February showing an 13.9 % decrease from this time last year.
The extension of the fall and trough essentially is because more data has been included in the forecast with it being three months since the last update and brings the Reserve Bank in line with many other economists’ expectations.
The pool of buyers remains small as evidenced from the total number of sales transacted so far this year and the amount of lending being drawn down. The ability to lend and the need to sell in order to purchase has driven the number of days on the market up 21 from last month to 60 days.
First time home buyers who have shown greater resilience compared to other buyers recently are showing signs of fatigue dropping from 25.6% of the total sales volume in December to 23.6% in February 2023.
The group of buyers showing an increased share of the market are multiple homeowners who often have greater access to equity or funding and didn’t need to secure a mortgage on their latest purchase. They are less likely to be affected by lending criteria and interest rates and are making the most of a quieter market but have a long term view on where they are buying and about the yield.
When selling the market is relative if you are buying and selling in the same market and it is always wise to remember that in the current market an okay price may be a great price in a week or a month.
Want to know how the market is affecting your property now and, in the future, then give Team Town and Country a call – after all that they bring you The Best of Town and Country and have their finger on the pulse.