Upgraders making a comeback, says CoreLogic
If you’re considering putting your property on the market in the next few months to catch the spring selling season, you’ll likely be researching New Zealand’s real estate trends.
With house prices still averaging $975,000 and rising nationally by 3.3% year-on-year, you’d be right in thinking we have a solid, if not spectacular, market.
Yet, a lot of focus is being put on a couple of drags on the market.
Firstly, there are twice as many homes on the market compared with almost three years ago.
Inventory is 15.8% higher than 12 months ago and 27.6% higher than the five-year average, according to industry researcher CoreLogic.
However, it pointed out in its recent report that May saw a 9.2% year-on-year rise in annual sales transactions – the 13th successive monthly improvement.
The oversupply is compounded by the Bank of New Zealand’s resolute decision to keep the Official Cash Rate (OCR) at 5.5% until inflation drops into the 2% range.
As an experienced agency, we see an increasing number of people considering a purchase before the inevitable market turn.
Many are upgraders aware they’ll need to pay a higher price for their next home if they sit on the sidelines too long.
CoreLogic suggests upgraders may become a bigger buyer segment in the next few months due to pent-up demand and the view the market will likely improve in the medium term.
More than a quarter (26%) of buyers are upgraders currently, CoreLogic says.
This compares with first-time buyers (42%) and investors (21%).
CoreLogic’s June report highlights the following:
- Our market is worth $1.63 trillion.
- A +1% increase in average property values in May was the strongest result since the +2.8% achieved in September 2022.
- Dunedin (+2.1%) and Hamilton (+1%) were the best May performers, according to its data.
- 7,000 new properties came on the market in the four weeks to June 2, making the total stock 21,784 – up +15.8% from 12 months ago.
- Rental revenue growth stands at +3.8% in the year to May. Gross rental yields nationally remain at +3.2% in growth terms.
Let’s discuss your home selling strategy.
By choosing us, you’ll benefit from our expertise and commitment, ensuring you feel confident and valued throughout the entire process.
