HOUSE PRICE GROWTH
On average across the country, house prices are double digits below their previous market peaks, while sales activity is steadily rising. Economists widely expect house prices will begin to climb again over the next 12 months, as the flow-on effects of easing credit conditions filter through the economy.
“ The expectation of growth is one of the most powerful drivers of buyer behaviour,” Coulson says.“ Buyers are increasingly aware that today’ s prices may look cheap in hindsight. An understanding of that urgency is translating into stronger enquiry on listings across our network, multiple offer situations, and more bidders in our auction rooms.”
The general feeling is that prices won’ t stay subdued for long. Waiting for growth to be well underway often means sellers miss the moment where competition is at its best.
“ Acting ahead of the curve often delivers some of the strongest results.”
SUPPLY AND COMPETITION
High levels of available stock continue to provide choices for buyers, but this dynamic is changing, Coulson says.
“ The flow of new listings on the market is gradually returning to more typical levels for this time of year. Additionally, the slowdown in construction will have implications for supply in the year ahead. Over the coming months, available supply will continue to contract, reducing choice, and intensifying competition.”
“ We’ re already seeing that days to sell are shortening in parts of Auckland and Christchurch. That’ s one of the first signs of a shift in the balance of activity.”
When choice narrows, buyer urgency grows. For sellers, the current balance – where demand is strengthening but stock is still high – creates an environment where homes attract genuine competition without buyers being paralysed by limited options.
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