Wellington Market Update | July 2023
Buyers who realise now is one of the best times to buy are facing lower-than-usual stock levels, Tommy’s Real Estate Sales Director Tim Clark says.
“The latest data from around New Zealand shows new listings are down but there is more activity in the market.
“Buyers searched more online in May and June than the same time last year, and we are seeing more people attend open homes and more multi-offer situations at time of sale.
“Buyers are telling us that because of the lower stock levels, combined with it being a good time to buy, they are looking at more property that they may have ‘ruled out’ in a market with plenty of stock.”
As a result, the Fear of Missing Out is on a slow rise while the Fear of Overpaying is on the decline, Tim says.
“At Tommy’s, we are seeing more buyers are ready and willing to make the purchase decision as soon as they find the property that works for them.”
So is now an optimal time for vendors to list their homes?
Tommy’s advice to vendors is they should always sell based on their circumstances.
“But if you were considering selling this year, now is a very good time,” Tim says. “The competition between vendors is low and buyer confidence and activity are returning.
“Moreover, as the weather warms and more people feel more confident in the market, it will become more competitive for vendors.
“We are finding that prices are fairly stable, even under multi-offer situations. This means we are seeing prices offered at multi-offer situations all within a much closer range than we have done in the past. The market is seeing values similarly.”
Of course, other variables can affect a property’s sale price. For instance, if it suffers from deferred maintenance or missing consents, it is likely to sell for less than a home without these issues.
“A good property that is presented well, marketed well, and priced well, will sell and could well have multiple offers,” Tim says.
While buyers are returning to the market, the absence of investors will continue until the general election in October.
“Vendors and buyers tell us they are keen to carry on with life rather than wait for the election, mostly because of the relative stability of the current market,” Tim says.
“But we do believe the return of investors to the market will depend on the outcome of the election.”
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