Introducing Ray White Now, an insight to provide clarity to all our customers on what is happening in the market now. If you are considering selling we explain how you can take advantage of the current conditions to achieve the best possible sales outcome.
While changes have quickly occurred in the confidence of buyers and sellers to transact real estate across New Zealand, the ability to borrow money has had increased barriers over the past quarter. When this is linked to rising interest rates, affordability has resurfaced as a key issue in buyer and sales rates. Looking at where the market has come from, it is not a surprise to many that a slowdown had to occur. Some markets have experienced higher increases which changed the average price considerably. Since COVID-19 and post our first lockdown in
April 2020, prices have surged an average of 41 per cent during the past two years across New Zealand. This dynamic in housing price increase has never occurred in previous real estate markets in such a short amount of time. Interest rates dropped to record low levels, and borrowing was encouraged. This allowed buyers to enter the market and sellers to take a perceived uplift in price. Confidence abounded in the market in New Zealand, property became very much the talking point, and the success of marketing property increased, which delivered higher sale prices and lower days on market.