Key market observations
Treena Drinnan Chief Agency Officer Ray White New Zealand
The New Zealand property market is undergoing significant changes , with several key factors shaping the current landscape . As a homeowner , buyer , or seller , staying informed about these developments is essential to make the best decisions in a dynamic environment .
WHAT ’ S HAPPENING RIGHT NOW ?
1 . Regulation Updates :
• Debt-to-Income ratios ( DTI ): New regulations are set to impact borrowing capacity , directly influencing affordability for buyers .
• Loan-to-Value Ratios ( LVR ): Ongoing restrictions on borrowing relative to property value have recently been eased but continue to shape purchasing power .
• Brightline Test ( BLT ): The tax implications for selling properties within certain time frames remain critical for investors .
• Interest Deductibility : Recent changes to tax rules around property investment are driving strategic shifts among buyers .
2 . Current Market Conditions :
• Inventory Levels : An above-average number of properties on the market offers buyers a broader selection .
• Listings : As we approach the Spring selling season , an uptick in new listings is anticipated .
• Interest Rates : There is considerable discussion around the downward trend in interest rates , which could make borrowing more accessible .
• Bank Lending : Recent easing in lending rules is expected to influence both first-time home buyers and seasoned investors , making it essential to understand how these changes will impact your borrowing strategy .
LOOKING AHEAD As we move through the rest of 2024 , here ’ s what you can expect :
• Shorter Time on Market : With increased buyer activity , properties will likely sell more quickly , particularly through auctions , which continue to deliver strong results .
• Increased Sales Activity : We expect sales volumes to rise as market confidence grows towards the end of the year .
• Current Stock Moving : Properties currently on the market are expected to sell , and as prices stabilise or increase , more sellers may enter the market .
• Price Trends : We foresee a gradual rise in median property prices towards the end of 2024 , continuing into 2025 .
• Regional Differences : Market conditions will vary across regions , so staying informed about local trends is essential .
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