WHY SELL NOW?
DANIEL COULSON CHIEF EXECUTIVE RAY WHITE NEW ZEALAND
Everyone wants to sell at the top of the market. The difficulty, of course, is that market peaks are only obvious in hindsight, says Ray White New Zealand Chief Executive, Daniel Coulson.
“ The more useful question for homeowners isn’ t whether values will be marginally higher in six or 12 months’ time. It’ s whether the conditions that coexist today are likely to become less favourable after achieving a successful sale.”
Presently, several forces are aligning that deserve careful consideration. They don’ t necessarily point to a booming market. Still, they do suggest today’ s environment offers a combination of buyer activity, financing conditions and market balance that may become increasingly difficult to replicate.
ACTIVE BUYERS
The Reserve Bank of New Zealand’ s( RBNZ) decision to lift the Official Cash Rate( OCR) to 2.50 per cent marks the beginning of a different chapter for New Zealand’ s economy.
Importantly, this isn’ t occurring because the economy is weakening. Quite the opposite, Coulson says.
“ Economic growth is improving, employment is stable, export incomes are strengthening, and inflationary pressures have proven more resilient than expected. Most economists now anticipate further increases in the OCR before the end of the year.
“ For homeowners, that matters because property markets respond well before official interest rate decisions fully flow through.”
Mortgage lending rates have already begun adjusting. Twoyear fixed rates have risen from around 4.50 per cent to more than 5.20 per cent, while wholesale funding markets continue pricing additional increases.
The result is a buyer pool increasingly aware that today’ s borrowing environment may prove more favourable than tomorrow.
That creates urgency and genuine motivation to act.
CHOICE AND COMPETITION
Coulson says there is a common misconception that sellers should wait until stock becomes scarce. However, history suggests otherwise.
“ Healthy markets aren’ t defined by a shortage of listings – they need the presence of committed buyers,” he says.“ Today, we are seeing families continue to relocate, first-home buyers are the largest purchasing cohort, and investors are returning with a longer-term outlook while values remain below their previous peak.”
RAY WHITE NOW NEW ZEALAND | 6