Spring is typically the key season for real estate but untimely headwinds this year will make for a weak property market.
Property prices are expected to track sideways at best this spring, with an expected influx of new listings on the market, allowing buyers plenty of time to smell the roses, according to analysts.
The Real Estate Institute and QV have said that ‘tough market conditions” would continue in the coming months, with the preliminary number of sales across New Zealand down by 15 per cent compared to the March quarter.
Agents have been reporting quieter conditions since about April when the string of interest rate increases began to have a negative impact on the market.
First home buyers cant afford the values of houses and this has caused an exodus of first home buyers from the market. Even though many people are due for their kiwisaver grant this has had little affect on what people can afford.
What does all this mean?
My gut tells me that the house values will probably drop another 5% on a whole. But many people now are going to hold onto their properties and not take a loss on their investments.
This is going to mean maybe less stock on the market than typically at this time of year. It will also mean that if you want to sell your home, you have no room to test the market. You need to nail the price on day one and be prepared to accept an offer that you aren’t completely happy with.
It’s a tough road out there, it will come back but if you need to sell this summer be prepared.