THE ROLE OF SUPPLY
One of the critical indicators that it ’ s time to sell is stock availability . Coulson says that as inventory levels decrease , the competition for remaining properties heats up , presenting challenges for sellers that need to purchase again in the same market .
“ Those who act early in the market ’ s upswing stand to benefit from more choice available on the market for sale and some of the best buying conditions we ’ re likely to see for the next several years .”
In September , Kiwis enjoyed an increase in the number of homes for sale , with property platforms like TradeMe and Realestate . co . nz reporting more listings and slightly higher asking prices . In addition to this rise in new listings , demand is also inching upward , evidenced by an increasing number of multiple-offer scenarios and properties selling for more than comparable sales data would suggest .
PREDICTABILITY AND A RETURN TO THE TRADITIONAL MARKET CYCLE
Following prolonged volatility , the real estate market is slowly returning to a more traditional cyclical pattern . This is good news for sellers craving certainty .
“ Buyers and sellers have become more attuned to market developments , demonstrated by the brief flurries of activity at the end of 2023 and again in February this year . These short but significant spikes show how responsive the market has become to any positive news .
“ While it ’ s too early to declare a full recovery , this readiness from the market points to a general trend of improvement . For sellers , this presents an opportunity to leverage early interest before the market becomes saturated or slows down once again .”
INFLATION , IN THE OFFICE , AND FORWARD-LOOKING INDICATORS
The labour market continues to play a critical role in residential decision-making . Despite projections anticipating a rise in unemployment to around 5.4 per cent by mid-2025 , recent reductions to the OCR and stabilising inflation are expected to free disposable income as more borrowers refix their mortgages at lower rates .
“ This will likely stimulate further demand for property , creating a more favourable environment for sellers as the new year approaches ,” says Coulson .
Meaningfully , annual Consumer Price Index ( CPI ) growth has fallen to 2.2 per cent – well within the RBNZ ’ s target band . Notably , core measures of inflation are easing , suggesting that the broader economy may be on the mend .
Source : REINZ , interest . co . nz
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