"House prices have flattened overall which is better than most expected. What's more, buyers are actively out there this winter with government deposit schemes and changes to lending requirements helping," says Tim Kearins, Owner of Century 21 New Zealand.
Mr Kearins comments follow REINZ releasing its Monthly Property Report for June – a month which saw median house prices across New Zealand increase 4.2% annually. At $850,000, the national median house price is up from $816,000 in June 2021. Month-on-month saw a 1.1% increase compared to May.
REINZ reported: 'With more stock on the market, more opportunity for negotiation, and prices off their peak, for those with access to finance, there is opportunity here. Reports from real estate professionals across New Zealand suggest owner-occupiers remain strong in the market. First-home buyers are remerging…'
"Rents are still high, with Trade Me's latest Rental Price Index showing median weekly rent now well above $600 in many Auckland and Wellington districts. Softening prices and more housing product coming to market is giving many tenants an opportunity to finally consider homeownership," says Mr Kearins.
Also helping first-home buyers, he says, is the fact that thousands more are now eligible for government assistance to pull together the all-important deposit. House price caps for the First Home Grant have been increased and for First Home Loans they've been entirely removed.
The Century 21 leader says changes to the Credit Contract & Consumer Finance Act (CCCFA) regulations, which took effect on 7 July, will also help more mortgage applicants to secure lending.
"Changes to the CCCFA regulations will help but the big banks remain tough with new borrowers. However, it doesn't all begin and end with the banks. More and more first-home buyers are discovering that mortgage brokers can deliver competitive rates and greater borrowing flexibility than traditional lenders," he says.
Across New Zealand, the number of residential property sales in June decreased annually by 38.1% from 7,629 in June 2021 to 4,721. At the same time, the total number of properties available for sale nationally increased 89.5%, from 13,861 in June 2021 to 26,271.
"For vendors, periods like this are a good reminder of just how important it is to engage the right agent and agency. People, not advertising, sell properties in quieter or challenging times. What's more, with the borders back open, an international brand like Century 21 with a global reach is once again an important advantage," he says.
He says with the Reserve Bank signalling interest rate rises for the foreseeable future, any buyers stalling to see if house prices fall much further risk paying more to service their lending.
"In recent years, many prospective first-home buyers have been locked out of the housing market. This winter they've finally been handed some keys and that's great for them.
"There are also plenty of next-home buyers out there. A change in personal circumstances, opting for more work-life balance, or a new job, are arguably happening more than ever, and that often means a new address. For whatever reason, many Kiwis still want to buy a house," says Tim Kearins.