C21 NEW ZEAL AND NEWS
PRICES SOFTENING BUT OPPORTUNITIES INCREASE
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
Unsurprisingly, the Real Estate Institute’s latest statistics confirm house prices are softening. However, it’s not all doom and gloom. Overall prices remain up on this time last year and a quieter market creates opportunities for more Kiwis to give homeownership a shot. Recently REINZ released its
now have greater access to
will see an opportunity to finally get
Monthly Property Report for May –
government help.
on the property ladder.
Following last month’s Budget
Another silver lining will be the
2022, more assistance has been
imminent changes to the Credit
targeted at first-home buyers.
Contract & Consumer Finance
House price caps for the First Home
Act (CCCFA) which since late last
Grant were increased and the First
year has seen banks apply ultra-
Home Loan scheme price caps were
conservative assessments on new
entirely removed. The changes
mortgage applications.
a month which saw median house prices across New Zealand increase 2.4% annually. At $840,000, the national median house price is up from $820,000 in May 2021. Month-on-month, saw a 4.0% decrease from $875,000 in April. REINZ noted: ‘Tighter credit
potentially enable thousands more
conditions, higher mortgage rates
Kiwis into the property market.
and increased housing supply continue to affect the New Zealand property market. Sales are slower to complete, property is staying on the market longer and upward pressure on prices is easing.’ The median number of days to sell now sits at 43. Properties are languishing for longer, but new listings continue to attract attention. This more moderate pace also opens the doors for first-home buyers, many of which have felt locked out of the property market in recent years. Further, prospective purchasers
Recent expansions to the Government’s first-home buyer
Across New Zealand, the number
schemes are positive, and with
of residential property sales in
the CCCFA soon dialled back,
May decreased annually by 28.4%
we’ll hopefully see more young
from 7,758 in May 2021 to 5,556.
people secure finance and seal
At the same time, the total number
deals. Yes, the 2020 and 2021 froth
of properties available for sale
is coming off, but the flip side is
nationally increased 77.6%, from
homeownership is becoming more
14,883 in May 2021 to 26,435.
attainable for more Kiwis.`
For those looking to sell their
Tim Kearins – Century 21 New
property, demand for good
Zealand – (0274) 495-547
properties remains strong. For those
tim.kearins@century21.co.nz
contemplating buying, yes interest rates are rising but so too are rents – now at record highs. It you can get a deposit together, and with prices getting more realistic, many
C21 MARKET PULSE
03
CENTURY 21
www.c21.co.nz
