Wellington Market Update | June 2023
The Wellington housing market is shrugging off the winter blues as renewed confidence makes it a good time to both buy and sell.
‘The Wellington winter housing market is shaping up to be similar to what we would expect to see in terms of listing numbers,” Tommy’s Sales Director Tim Clark says.
“However, this year we expect the market to be different from the norm.”
He says the last 18 months or so have been uncertain on many levels when considering factors such as exiting a global pandemic, inflation, interest rate hikes, property prices dropping, higher than expected net migration, more certainty in job security, and an impending election.
“In saying that, we are seeing more stability right now than we have seen over the last 18 months.
“Experts are saying that inflation and interest rates are likely at their peaks and that we have likely reached the bottom of the price correction, with a number of economists agreeing prices may even start to trend upwards again over the next coming year or so.
“That’s why, at Tommy’s, we believe we have entered an unusual time where it is both a good time to buy and also to sell.”
Tim says the return of more buyers to the market is generating better outcomes for sellers.
“For example, last month at Tommy’s, over 60 per cent of all sales were sold under multi offer situations, which, for a vendor with a good property, leads to a more competitive sales process.
“Equally, for buyers we are seeing this is a great time to buy given there is more certainty and prices are at the lowest levels for some time.
“As such, we are seeing more people at open homes and offering on properties.”
Tim says the uncertainty of the last 18 months or so had led some buyers to exit the market.
“First, prices were skyrocketing, then dropped, and at the same time interest rates and inflation meant there was uncertainty in the market.
“We’re now seeing these buyers re-enter the market, which is a positive sign.
“In the last three months — March, April and May — our city office saw a higher volume of sales than what we recorded for March, April, and May of 2022 (consecutively and combined).
“This is very promising for homeowners, and buyers alike.”
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