C21 NEW ZEAL AND NEWS
PRICES FLATTEN WITH KEEN BUYERS STILL OUT THERE
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
House prices have flattened overall which is better than most expected. What’s more, buyers are actively out there this winter with government deposit schemes and changes to lending requirements helping. REINZ recently released its Monthly
are now eligible for government
important it is to engage the
Property Report for June – a month
assistance to pull together the all-
right agent and agency. People,
which saw median house prices
important deposit. House price caps
not advertising, sell properties in
across New Zealand increase 4.2%
for the First Home Grant have been
quieter or challenging times. What’s
annually. At $850,000, the national
increased and for First Home Loans
more, with the borders back open,
median house price is up from
they’ve been entirely removed.
an international brand like Century
$816,000 in June 2021. Monthon-month saw a 1.1% increase compared to May.
Changes to the Credit Contract & Consumer Finance Act (CCCFA)
21 with a global reach is once again an important advantage.
regulations, which took effect on 7
With the Reserve Bank signalling
REINZ reported: ‘With more stock
July, will also help more mortgage
interest rate rises for the
on the market, more opportunity
applicants to secure lending.
foreseeable future, any buyers
for negotiation, and prices off their peak, for those with access to finance, there is opportunity here. Reports from real estate professionals across New Zealand suggest owner-occupiers remain strong in the market. First-home buyers are remerging…’ Rents are still high, with Trade Me's latest Rental Price Index showing median weekly rent now well above $600 in many Auckland and Wellington districts. Softening prices and more housing product coming to market is giving many tenants an opportunity to finally consider homeownership. Also helping first-home buyers is the fact that thousands more
CCCFA changes will help but the big banks remain tough with new borrowers. However, it doesn’t all
stalling to see if house prices fall much further risk paying more to service their lending.
begin and end with the banks. More
In recent years, many prospective
and more first-home buyers are
first-home buyers have been locked
discovering that mortgage brokers
out of the housing market. This
can deliver competitive rates and
winter they’ve finally been handed
greater borrowing flexibility than
some keys and that’s great for them.
traditional lenders.
There are also plenty of next-home
Across New Zealand, the number
buyers out there. A change in
of residential property sales in
personal circumstances, opting for
June decreased annually by 38.1%
more work-life balance, or a new
from 7,629 in June 2021 to 4,721.
job, are arguably happening more
At the same time, the total number
than ever, and that often means a
of properties available for sale
new address. For whatever reason,
nationally increased 89.5%, from
many Kiwis still want to buy a house.
13,861 in June 2021 to 26,271. For vendors, periods like this are a good reminder of just how C21 MARKET PULSE
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CENTURY 21
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