Market Stabilising – Good Time To Buy If You Can

“It’s good to see some stabilisation in the real estate numbers - no doubt helped by the return of immigration and the Reserve Bank signalling last month an easing of LVR restrictions and a possible end to OCR increases,” says Tim Kearins, Owner of Century 21 New Zealand.

Mr Kearins’ comments follow REINZ releasing its Monthly Property Report for May– a month which saw median prices across New Zealand decrease 8.2% year-on-year to $780,000 but saw no change month-on-month. Days to sell have risen to 49 days for May 2023 — up six days compared to May last year.

REINZ reported: ‘As we head into the winter months, we are seeing glimpses of positivity, especially in the regions following the Reserve Bank’s announcement of easing loan-to-value restrictions and the stabilising of interest rates.’

The regions of Northland, Auckland, Waikato, Wellington, Tasman, Marlborough and Southland all had a 30% increase or more in sales volumes month-on-month, with REINZ headlining: ‘Early signs of returning confidence as sales volumes rise in the regions’.

The new, lesser LVR restrictions took effect on 1 June, enabling banks to be able to approve more of their new lending to owner-occupiers borrowing more than 80%, as well as an easing for investors.

“Too many creditworthy borrowers were being blocked from borrowing. Easing the LVRs gives banks and borrowers a little more wriggle room which is positive for the market, as is the return of some solid inward migration, not to mention that perhaps the peak of interest rates is in sight,” says Mr Kearins.

The Century 21 leader says with immigration once again on the rise, Century 21's international reach is again a big bonus. What’s more, with borrowing still tough, having access to inhouse mortgage broker Julius Capilitan of Century 21 Financial is also a plus for the global real estate brand in New Zealand.

“Unlike many other real estate companies, we’re not seeing a big drop off in agents or offices. In fact, we’re making the most of these more challenging times with the recent appointment of Quinton Keyser – our National Growth & Service Manager.

“We’re now actively working to attract competing agents, principals, partners and businesspeople to join C21NZ as franchise owners,” says Mr Kearins.

The realtor says with rents still high, those who can organise a mortgage and buy this winter, won’t look back. What’s more, the industry is reporting that vendors are getting more realistic with their price expectations, with many now keen to sell before the General Election campaign which traditionally sees Kiwis delaying their decisions.

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