As the sun sets on 2023, New Zealand's real estate landscape radiates with potential. This summer, we're unlocking the doors to an array of homes, weaving a network that connects people and properties across the nation.
From boom to balance
The tale of residential real estate in New Zealand over the past two years is one of evolution. A journey from what was explosive growth to a more balanced, sustainable pace. New Zealand stands on the brink of another phase of underbuilding, a challenge that will be fuelled by a significant uptick in net migration, a testament to the country's enduring appeal.
Rental market dynamics
An influx of new Kiwis places pressure on an already tight rental market, spiking demand for homes. Yet, there's a silver lining – the reinstatement of interest deductibility. This policy shift is a beacon for investors, guiding them towards rental-ready properties which should inject much-needed supply into the rental sector.
First home buyers jumping in
A stand out for the market this year has been the surge in activity by first home buyers across most regions. Under pressure from the tight rental market, these buyers have taken the opportunity to climb on the ladder just in time to ride the market recovery.
Finance starting to loosen
Throughout 2023 a key challenge faced by buyers was securing finance and dealing with higher interest rates. With growing confidence that inflation is getting under control, interest rates are at or near peak, and major banks becoming more secure in the market recovery, we can expect finance to become more straight forward.
On the vendor side, a key challenge has been resetting price expectations to reflect current market conditions. Whilst we are seeing the market recovering across most regions, prices remain down from peak. As you embark on your next step, it’s more important than ever to get clear, robust advice about prices from experts who know the local market.
Looking at the year ahead
The future, albeit tinged with uncertainty, holds promise. The interplay of global events, monetary policies, immigration, and housing supply pressures will continue to sculpt the market's trajectory. However, with the new government providing clear direction and greater certainty, the residential real estate market is poised to remain a pivotal contributor to the economy.
The best time to buy and sell
The sunny summer months are emerging as an opportune time for real estate transactions. It's a period to capitalise on the positive sentiment, both across the market and more generally across the community.
A heartfelt thank you
Our gratitude extends to our clients and communities nationwide who have supported our 100 offices all over New Zealand.
Here’s to an Altogether Better summer season and a prosperous 2024 ahead.