C21 NEW ZEAL AND NEWS
ACTIVITY LIGHTENS BUT NOT A BUYERS’ MARKET YET
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
The latest Real Estate Institute figures confirm we’ve re-entered a more balanced and calmer market. Importantly, house prices remain strong, and overall, they’re still up on the same time last year. Despite some headlines, it’s not a buyers’ market yet. Recently REINZ released its Monthly
proposed changes to the CCCFA
April saw a stand-off with many
Property Report for April – a month
set to be enacted next month will
vendors refusing to budge while
which saw median house prices
be positive. However, interest rates
buyers kept their hands in their
across New Zealand increase 8.8%
have continued to rise.
pockets. However, we’re starting
annually. At $875,000, the national median house price is up from $804,362 in April 2021.
All eyes will be on the Reserve Bank’s next Official Cash Rate (OCR) decision on 25 May. Last
to see more Kiwis meet the market, with some very satisfactory outcomes being achieved for both parties.
REINZ noted ‘we’re now in the phase
month the OCR rose by 50 basis
of the property cycle where demand
points to 1.50% – marking the fourth
The 2020 and 2021 froth has
has weakened, sale counts are down
consecutive hike since October last
subsided, properties in demand
but prices remain high.’
year and the biggest jump in over
are still making good money, and
20 years.
interest rates remain below the
It’s easy to compare now to some
historical average. There are plenty
unbelievable prices achieved during
Interest rates have been rising
2020 and 2021. Regardless, most
but they’re still miles off where they
properties remain well ahead of
have been in previous decades.
where they were in 2019. In fact,
Historically, they’ve tended to be
plenty are still selling for 40 percent
around six or seven percent on
Tim Kearins – Century 21 New
more than what the owners paid
average for Kiwi borrowers. Like
Zealand – (0274) 495-547
three or four years ago. Without
house prices, we often compare
tim.kearins@century21.co.nz
doubt the froth is coming off, but
today’s interest rates to the
most vendors are still enjoying
extraordinary period of 2020 and
substantial gains.
2021, but they’re still below the
The property market has taken a big
historical average.
hit since December with the Credit
Even to the casual observer it's fairly
Contract & Consumer Finance
obvious what we are seeing now
Act (CCCFA) making lending
across the New Zealand market –
much tougher. The Government’s
listings are up, and sales are down.
C21 MARKET PULSE
02
CENTURY 21
of good opportunities out there for buyers and sellers keen to act before winter.
www.c21.co.nz
