Wellington Real Estate Market Update – February 2021

MARKET COMMENT AS AT 24th FEBRUARY 2021

The Real Estate Institute of New Zealand (REINZ) report that despite most New Zealanders taking a summer holiday in January, the housing market was busier and more buoyant than we would usually see at this time of the year. In most areas, house prices have continued to rise, and competition remains strong with multiple offers being presented on many properties. Fuelled by the fear of missing out and a strong desire to buy before prices rise further, January/February has seen a continuation of the bullish buyer-driven market that we witnessed last year.

The introduction of stricter standards for Landlords to meet and the requirement for investors to have a greater financial input when buying rental properties will impact on some buyers but we expect these hurdles will be overcome by the strong ongoing demand for more rental accommodation and the all-time cheap interest rates available to purchasers. The escalation of house prices in recent times must surely put purchasing a home out of reach for many thereby increasing the already heavy demand for rental accommodation.

Tommy’s has listed strongly in the early weeks of 2021 but with demand being as strong as it is, we still need more property to meet unsatisfied buyer demand. Now is a good time for those considering selling to capitalise on a strong market and work with us to maximise their selling opportunities.