Perspectives Property Report July 2024

I’m Mark Harris and welcome to the July Perspectives market update.

The latest property stats paint a contrasting picture of what is happening in the wider NZ economy. Steadily increasing sales volume and listings are being recorded against underlying macro economic issues stirring job security and consumer confidence.

Putting a blanket lens over the whole country, the past 12 months has been reasonably stable with prices not falling to any great degree and buyer activity returning in the lower and upper end of the market but remaining soft in the mid-market where vendors and buyers are contemplating their next move when they get a clearer picture on interest rates.

All in all, we think the market is poised to jump as positive economic sentiment returns and soon to be introduced policies including Bright-line and interest deductibility come into effect.

May REINZ figures shows year on year sales count increase of 6.8% and a year on year price dip of 1.3%. Then if we look at CoreLogic numbers QV House Price Index shows home values fell by a nominal average of 0.2% over the three months to the end of May.

In general, buyers are active and interested but are happy to wait for the right property at the right price, with those properties professionally marketed to the right audience out performing those that aren’t.

Market nuances from suburb to suburb and region to region play more of a role at the moment and it’s important for vendors to be represented by an agent who knows their area intimately and has access to an extensive buyer audience.

In the higher end of the market, typically properties above 7 million are still seeing strong activity. Deals are taking a little longer to put together but when markets are less active like this, astute buyers who are in a position to spend see opportunities and make their move.

Two examples of top end sales are this beautiful lodge on Lake Tarawera sold by Shona Duncan for 10 million dollars and this 440 square metre alpine lodge set on the outskirts of Wanaka sold by Matt Finnegan, Russell Reddell and Vicki Spearing for just over 10 million dollars.

Our homes on the market for under 2 million are also seeing reasonable activity so adjusting for typical winter sales patterns, we’re moving through in a reasonably consistent fashion considering the time of year.

For those looking for a special home, this Carterton Wairarapa home is a dream in any season with its huge glass windows, artistic living spaces, a Palm Springs-worthy pool area and nine hectares of thick native bush. It’s just a 15 minute drive to Martinborough.

That’s all for this edition of Perspectives, see you next time.