One of the few benefits of getting older is that you start to notice cycles, which doesn’t mean you can predict the future it just means that you are more aware of what stage of the cycle you are in.
In this current cycle (and depending on what side of the ledger you are on) buyers are still trying to pick the bottom, and vendors are looking for the rebound. The problem with picking the high or the low, is that apart from first home buyers and investors, you will likely be buying and selling in the same market anyway.
The reality is, is that it is always a sellers’ market, even during the dips. Success when selling depends on what you have and how long you have had it, not what the market is doing.
Balance of Power
Over the last decade there has been power imbalance when it comes to the supply and demand of property as buyers have outweighed vendors for years. Even looking back to last year, which was the most challenging in our real estate career, we still had more buyers looking to buy than sellers willing to sell.
A major factor in this unbalance has been a continued population growth and less people residing in each household. This combined with the popularity of property as an investment for both New Zealanders and high net worth foreigners.
The construction boom of the last few years sought to balance out supply issues, but due to the obvious land constraints in Wellington, many of the developments occupy areas with less demand and do not overcome the demand for well-located residences.
Understand the Common Complaints
The key to understanding market trends it to work at the coal face. This has always been a cornerstone of our business. On an annual basis we seek feedback with literally thousands of buyers which quickly builds a picture of what the non-negotiables are in any given market.
Twenty years ago, when we were both in real estate, most first home buyers looked for the opportunity and potential. Fast forward to 2023 and these words no longer carry the same optimism, in fact it is the complete opposite. Buyers want a warm and dry home with little to no work required and can perhaps tolerate doing bit of paint here and some carpet there.
The desire to renovate and skills required to decorate have been lost. A buyer just last weekend said they wouldn’t even know who to call to start making improvements. Couple this with the absorbent costs of construction, I can understand the sentiment.
Real Estate AU
When it comes to maximising your homes’ market value, the formula is very easy. In 2023 this is what every buyer who intends to occupy the property values
- A well-presented interior
- Good quality fixtures and fittings
- A good quality heat source, central heating is a bonus
- Insulation everywhere possible
- Double glazing is well received but non-negotiable for modern properties
- No deferred maintenance
- No elevated moisture readings
- Low maintenance section
The final compound in Real Estate AU is choosing the right agent. Want to talk about maximising your sale? Don’t hesitate to call.
The Wellington Market
By all accounts the Wellington market is on a condensed timeline, trying to squeeze the entire spring selling season into the eight weeks post the election. Just last week we secured multiple listings set to launch with a deadline for sale by Christmas which has happily coincided with a clear lift in open home numbers.
Banks have opened their doors a little wider although the cost of borrowing has begun to creep up and contributed to some of the new stock we have secured.
One of the biggest concerns in the current market is the lack of insurance options in Wellington. We appear to be on the naughty list for many insurance companies, and with less competition we are wearing a higher cost of ownership. This is magnified in the apartment space with astronomical body corporate fees also a sale killer.
Wellington Market Quick Stats
What’s on this November in Wellington?
Toast Martinborough, Various Locations, 19th November 2023
Toast Martinborough has been captivating festivalgoers since 1992. The esteemed wine and food festival returns for its 30th instalment on Sunday 19 November. Born out of a desire to showcase local wineries and elevate Martinborough’s reputation on the global stage. Toast has evolved into a celebration of wine, food, and entertainment.
Each year, thousands of visitors descend upon Martinborough and Wairarapa. The full-day event takes visitors on a journey across eight picturesque festival sites. Twelve local vineyards are taking part in the 2023 event. Sample drops from local favourites like Palliser Estate, Ata Rangi, Te Kairanga, and Moy Hall. This year also brings exciting newcomers like On Giants Shoulders, Huntress, Big Sky Wines, and Stad_ko Wines.
Click here to find out more info
On A Good Day, Anderson Park, 30th November – 2nd December 2023
Spread over multiple days and featuring a huge lineup of local and international acts, On A Good Day is Wellington’s newest music series.
Beginning on Thursday 30 November, the three-night series kicks off with internationally acclaimed Irish singer-songwriter Dermot Kennedy. Night two brings indie-rock band The War On Drugs. The series ends on Saturday night with Matt Corby and Allen Stone.
Click here to find out more info
Wellington Phoenix Women vs Western United FC , Porirua Park, 12th November 2023
Football fever is set to return to the capital as the Wellington Phoenix women embark on their biggest Liberty A-League season yet. Get your friends and whānau together and head along to experience some of Aotearoa’s epic football talent.
Click here to find out more info
