"With three quarters of our regions still up on last year, much of the predicted doom and gloom has not been realised but the current environment still presents plenty of challenges," says Tim Kearins, Owner of Century 21 New Zealand.
Mr Kearins comments follow REINZ releasing its Monthly Property Report for August – a month which saw median house prices across New Zealand decrease 5.9% annually. At $800,000, the national median house price is down from $850,000 in August 2021. Month-on-month saw a 1.2% decrease compared to July.
REINZ reported: 'Typically a slow month, August market activity was further affected by concerns around rising interest rates and inflation. However, there are early signs of a spring lift as vendors balance price expectations with reality and traffic through open homes increases.'
Just four of the 16 regions reported annual decreases in the median house price, with the entire South Island up on the same time last year. REINZ noted that the major markets of Auckland and Wellington were two of the four regions which recorded decreases, affecting the annual movement in the national median price.
"With overall house prices softer across the country, it's important for vendors to engage the right real estate agent from the outset. In this market vendors need a skilled salesperson and negotiator who will defend their property's true value and can close a deal," says Mr Kearins.
Across New Zealand, the number of residential property sales in August decreased annually by 18.3%, from 5,983 in August 2021 to 4,891. At the same time, the total number of properties available for sale nationally increased by 107.7%, from 12,249 in August 2021 to 25,441.
"Buyers should select an agent who's continuing to sell houses for good money. Statistics show in this market, high volume sellers are often low-value sellers. Selling plenty is not as important as selling well," he says.
The Century 21 leader says despite the Government formally making some tweaks to how lenders should interpret the Credit Contracts and Consumer Finance Act (CCCFA), the hurdles remain too high for many Kiwis seeking a mortgage. However, he's keen to point out that it doesn't all begin and ends with the big banks.
"Mortgage brokers like Julius Capilitan of Century 21 Financial do all the running around. Brokers can deliver competitive rates and greater borrowing flexibility than the traditional lenders and may just provide some light at the end of the tunnel for first-home buyers," he says.
Mr Kearins is also keen to remind prospective vendors that now is not the time to sell privately, despite the temptation to save paying commission.
In late 2020, REINZ released extensive industry analysis that showed homeowners who use a real estate agent can expect to get on average 15% more for their property than they would by selling it privately.
"There are still plenty of buyers out there, boosted by the Government's fast-track resident visa scheme which sees potentially tens of thousands of our newest residents eligible to purchase property. While the market has softened, we're still seeing good agents, selling good properties for good money," says Tim Kearins.