Survey results indicate a bright turnaround from the prior year , with nearly 65 per cent of survey respondents noting that they expect residential values to rise over the year . This contrasts against just 15 per cent in 2023 .
Despite a burgeoning feeling of optimism , Kiwis are undeniably spending more money on debt-servicing and housing costs , with three-quarters saying the elevated cost of living has significantly impacted their lives .
Almost 28 per cent of the respondents said they planned to buy a home in 2024 , slightly up on the 22 per cent reading in 2023 . However , financial concerns loom large , and buyers have become more flexible to fit within the budget .
Nearly 90 per cent noted that they are willing to compromise in size , location and quality when searching for their next home .
Interestingly , 41 per cent said size was a key area for compromise , while 45 per cent could flex on a garden / outdoor space , 39 per cent condition , 21 per cent property type , and 26 per cent location .
Unsurprisingly , first-time home buyers were the demographic most likely to cast the net wide . Financial concerns , which remain a substantial barrier to market entry , impacted them most significantly .
Should these homeowners make good on their plans , they must sell an existing property . The survey found that 23 per cent of the owners intended to sell within the next year and 40 per cent in the next two .
They reported their most significant concerns as follows :
• Ability to achieve the desired price : 68 per cent .
• Disruption caused by sales campaign : 37 per cent
• Market conditions : 35 per cent .
The report also highlighted exciting trends , including de-urbanisation . Of those surveyed , 37 per cent said they would prefer a move to a less urban location in the future , reflecting the idea that more Kiwis look to New Zealand ’ s regions for affordable housing , employment opportunities and lifestyle benefits .
There ’ s a caveat , though . More than 50 percent of the population aged 65 and up is seeking more urban environments , presumably to be closer to support networks , health services , and amenities .
The data also showed that since February 2023 , the number of renters has decreased while the number of entry-level buyers has risen , indicating that renters-tobuyers are a window of opportunity within the market .
These purchasers are encouraged to enter the market because lower housing acquisition costs offset high rental rates , and mortgage repayments are more closely aligned than previously .
Source : TradeMe State of the Nation Report 2024
With more entry-level buyers well-equipped with savings accrued during the latest ‘ wait-and-see ’ phase of the market cycle , there ’ s a perception they might as well start paying their own mortgage – as opposed to someone else ’ s . If that , or anything else in this story , sounds like a bit of you , our financial experts at Loan Market are here to help .
Kiwis aged between 25 and 44 were reportedly most likely to buy a home within the next two years , citing upsizing , lifestyle factors , and family requirements ( like school zoning ) as the most significant drivers for change .
Photo : 39 Maungakiekie Avenue , Greenlane | Proudly marketed by Dean Tuffley , Ray White Mt Eden 23