Market Review July 2024
Without a doubt the present market situation is one of the most complex I have seen in almost two decades of experience in the industry.
We are being met with mixed signals across the board and it's a confusing time for both vendors and purchasers alike.
Although nationally there appears to be a year-on-year growth in values, when you drill down into the numbers on a locational basis a different picture materialises and looking at the past three months of nationwide activity we see values have actually dipped slightly by 0.2%.
Some locations are doing incredibly well, such as Westland, Dunedin, Kaipara, and Christchurch, which report healthy rises, while others—Bay of Plenty, Gisborne, and Auckland—are seeing slippage.
As the Brightline rules change, we expect to see a wee flurry of listings coming to the market as Vendors who are keen to realise their capital or perhaps release financial pressure move to sell down assets.
We have also seen a lift in stock numbers. Looking against last year's figures, there is around 20% more property listed for sale than there was in 2023. Of course, this will impact people's buying and selling habits—as will the unchanged OCR rate.
Locally, we are seeing Vendors adjust expectations as they see or experience longer periods between list and sell dates, although in reality, this is completely consistent with the usual seasonal lull, albeit aided by an overarching economic situation and more competing property listed for sale in the region.
I have no doubt that as we push through the cooler months, Spring will see us in a more stable place. Buyers are there - some are just financially cautious. Money is there too but how that is accessed has changed and lets not forget that well-heeled buyers who are not pressured by the ebbs and flows of the economy are still in the hunt also and they continue to target both personal lifestyle properties and development opportunities. So there is positiveness in the marketplace - its just how we capitalise on that.
And how we do that in this more challenging market will come down to the experience of the salesperson. Having a skilled agent who is able to navigate the environment, encourage buyers to act, overcome objections and be able to negotiate successful financial outcomes for Vendors is one the most valuable tools they can have.
The outlook overall is cautiously optimistic, so let's push on to a successful spring period!
