PHOTO: Sarah Wood, CEO of realestate.co.nz
April saw the New Zealand property market affected by rising costs of living, elevated interest rates, and recessionary pressures. According to new data from realestate.co.nz, there was a nationwide decline in property demand, a trend observed across most regions.
The national average asking price has remained relatively stable for over a year, showing a marginal decrease of 0.6% compared to April last year, now standing at $868,877. However, certain regions such as Central Otago/Lakes District and the West Coast saw increases in average asking prices, defying the national trend.
Sarah Wood, CEO of realestate.co.nz, highlighted a cooling of buyer interest amid economic uncertainty, with searches and engagements per listing decreasing nationally by 10.4% and 7.5% year-on-year, respectively. Economic reports indicating decreased consumer confidence in April align with this decline in property demand.
Wood pointed out that roughly 59% of existing mortgages in New Zealand are up for renewal within the next 12 months, potentially leading to increased interest rates and impacting buyer liquidity. Additionally, high stock levels in April, up by 18.1% compared to the previous year, further contributed to waning demand.
Despite national trends, certain regions like Central Otago/Lakes District and the West Coast showed resilience, with buoyant markets and year-on-year increases in average asking prices. Central Otago/Lakes District, known for its high average asking prices, experienced a drop in new listings but an increase in demand, suggesting continued desirability for property seekers.
In contrast, the West Coast, although a smaller market, saw an increase in demand alongside a rise in average asking prices. This region’s average asking price surpassed that of Southland for the first time in several years.
Wood emphasized the importance of seeking expert advice tailored to local market conditions for buyers and sellers alike. Despite economic challenges, opportunities still exist, as demonstrated by regions like Central Otago/Lakes District and the West Coast, reinforcing the significance of staying informed and proactive in navigating the property market.
SOURCE: realestate.co.nz