‘Sluggish’ housing market could be perfect time for first-home buyers

With growth in the housing market slowing and asking prices plummeting in some areas a property expert believes now might be the right time for people to start searching for their first home.

CoreLogic chief property economist Kelvin Davidson told AM on Monday the housing market is a little bit “sluggish”.

“The key thing we’ve seen turn around is listings, there is still a reasonable flow of listings coming onto the market but what’s happened is sales at the other end of the pipeline have tailed off as credit has tightened up,” he said.

“The total stock on the market you can choose from has had a chance to replenish, so what I think we are seeing is buyers having a little bit more pricing power, so the balance of power is shifting towards them.”

Even with more listings on the market, Davidson said that some auction clearance rates have been “really poor”.

“I have seen some stats from around Auckland that some auction clearance rates have been really poor so the mood has changed,” Davidson told AM.

“That is the other thing here, it’s not just interest rates or credit availability or listings, there is also the mood in the housing market that matters a lot and expectations matter a lot.

“If a buyer puts in a sneaky offer, maybe the vendor thinks ‘is that the best offer I’m going to get? Not sure I’ll get a second offer so I’ll take it’.