Hopeful after a challenging year of variable economic conditions, 2023 instead kicked off with a continuation of slower sales activity amid broad-based market uncertainty and disruptive global events.
However, a new set of dynamics have arrived just in time for the winter sales season, providing the renewed potential to heat up the residential property market.
Discouraged by tighter credit conditions, steadily rising mortgage lending rates, and global volatility, house hunters turned bystanders over the last 18 months, increasing the backlog of qualified buyers ready to pounce once the timing (or property) is just right.
Endorsed by historical capital gains on their own assets, which despite a cyclical downturn, still mean the overwhelming majority of residential properties are worth significantly more than they were pre-pandemic, these spectators are primed for action – perhaps just needing a little encouragement.
Motivation comes in all shapes and sizes for homeowners interested in making a move, but on the financial side of the ledger, recent data releases are a stimulus for positive thinking, with inflation measures tracking downward and a reasonably broad consensus that long-term mortgage lending rates have passed their peaks.
Add to this renewed enthusiasm from lenders to win the business, and a fresh suite of reforms to the Government’s Credit Contracts and Consumer Finance Act (CCCFA) legislation, set to help borrowers’ money go a little bit further.
Recent house price indices across the country echo these sentiments, showing that the downward trend in most markets has slowed in recent weeks – something we expect to continue as Kiwis observe a return to positive net migration, creating new demand for housing and rental properties. At the same time, a sharp decline in the number of new homes being consented is affecting the forward-looking supply pipeline.
Wage growth and employment prospects remain strong for now, helping house hunters to feel more confident, and the looming general election, with new chatter around the introduction of a Capital Gains Tax and Debt-to-Income controls provides further impetus for sellers to make their move.
With a few new developments helping to thaw the summer’s chilly sales performance, Bayleys residential experts are thinking outside the box, looking beyond long-held seasonal beliefs to enact solid sales strategies that achieve results.
Buyer enquiries, auction clearance rates and property inspection numbers inspire new confidence, just as Bayleys’ recent acquisitions have provided an increased brand presence across the country and a boost for regional markets in Thames-Coromandel and Central Otago.
Now boasting a nationally-connected network of 102 offices and an international affiliation with global property consultancy Knight Frank, Bayleys residential sales experts are well-poised to maximise opportunities this season, helping sellers to optimise the value of their homes through a rewarding combination of exclusive marketing techniques and a 100 percent Kiwi owned and operated approach to the residential sales process.