Real estate agents are great at the ole’ humble brag. You know the ones:
- SOLD for a suburb record!
- SOLD 100% higher that the RV
- SOLD with 52 offers submitted at the tender! Want to know how I did it?
Sadly, those days are gone (perhaps not the bragging). As we transition from a sellers’ market to a balanced, or perhaps even, a buyers’ market, now is the time you should be looking to buy. Here’s why.
One of the first indications of the recent change was a rush of stock to the market. With more choice comes less buyers per property as their attention is diverted to new stock. We haven’t seen this level of choice in Wellington since 2015. And of course, when there are less buyers per property, there are less sales. Days on market in the capital have been increasing rapidly with some properties sitting for extended periods before being withdrawn. But even in this changed market we still anticipate the seasonal slowdown, and a drop in listing numbers as we head into Autumn. So if you have been waiting to buy, we recommend focusing your attention over the next six weeks, because buying now could see you sitting pretty in years to come.
Two types of vendors
The property train spotters out there are likely to have noticed a property, or two, failing to sell at recent tender date. At this stage the vendor has two options. Change the sales method and hope to achieve a result down the track or withdraw the property from the market and try again at a later date. The vendors that stay on the market are more inclined to meet the current conditions. While this is not always ideal, it is demonstrating a commitment to the process and therefore moving on. As a buyer you are more likely to secure a property at a fair price when the vendor has a genuine reason for the sale. Now is the time.
Never chase the bottom
The media has started to report on the changes in the market with banks also weighing in. It’s normally around this time that buyers become fearful about buying a home only for it to be worth less in a few month’s time. Buyers often discuss this with us and, in our experience, it can really hold up their buying decision. The problem with trying to pick the bottom of the market is when the media starts reporting it, it’s often on the way back up again. By that time it can be too late. Anyone looking to buy a home to live in, and not taking a short-term view of their purchase, will be protected against market fluctuations. We understand that it can feel strange to buy when others aren’t, but you will always buy better when you’re not in competition with others.
Delay the work
The building industry is suffering from a shortage of plasterboard (or gib) which is playing havoc with renovation timelines. While it might not be the best time to be modernising or renovating, finding a property that has ‘potential’ and delaying the work could be an excellent option. Right now buyers are making short term decisions. We have noted that buyers are overlooking properties with work to be completed and favouring modernised or new homes with no work required. The smart buyer will be picking up ‘opportunities’ now to realise value later. Like the empty toilet paper shelves, the plasterboard will be restocked.
The Wellington Market
As pointed out in this barometer the market has shifted away from the highs of 2021. January and February brought a huge number of new listings to the market and, for the first time in a long time, buyers have choice. As we head towards Autumn you will start to see a slowdown in the number of listings coming to the market and this is likely to help balance the current issue of supply and demand. The noise around the CCCFA has started to ease as mortgage brokers gain experience in navigating the system. This should lead to more pre approvals. The current, and ever increasing, volume of Covid infections are likely to put a hold on many purchasing decisions so let’s hope we come out the other side soon.
Wellington market quick stats
What’s on this March in Wellington?
Journey Through Middle-earth: Wētā Workshop’s Costume Trail, Various locations, 4 Feb – 31 Mar 2022
Grab a map and take a tour of the film capital of Aotearoa and discover iconic pieces from The Lord of the Rings in this free multi-location exhibition. Follow the trail to find Sauron’s mace, an original orc costume, and a Royal Guard of Rohan’s armour, among many other pieces and props.
Threads Textiles Festival, Various locations, 16 – 20 Mar 2022
From intricate embroidery to 1970s high fashion, psychedelic oriental rugs to Māori weaving and Niuean barkcloth, the festival demonstrates the diversity of textiles and the innovative ways practitioners are adapting old traditions to create contemporary artworks.
New Zealand Fringe Festival, Various locations, 18 Feb – 12 Mar 2022
This summer’s Fringe programme features more than 200 events across 37 different venues around the greater Wellington region, including theatre, circus, comedy, cabaret, dance, visual arts, sonic arts, and film. Festival Director, Vanessa Stacey, describes the festival as Aotearoa’s “birthplace of brilliance” and says this year the programme is “absolutely brimming with fresh new exciting shows and exceptional talents.”