"Listings are lifting which is giving Kiwis looking at property plenty of choice and first-home buyers greater opportunities to get on the property ladder. The latest statistics for sellers, however, are what we all expected. It's a timely reminder for vendors to engage the best agent and agency," says Tim Kearins, Owner of Century 21 New Zealand.
Mr Kearins' comments follow REINZ releasing its Monthly Property Report for October – a month which saw median house prices across New Zealand decrease 7.5% annually. At $825,000, the national median house price is down from $892,000 in October 2021. Month-on-month saw a 1.9% increase compared to September.
REINZ reported: While October sees an increase in enquiry and open home attendance in some regions, rising interest rates have caused hesitancy amongst buyers across Aotearoa New Zealand. The national median price showed improvement on September. Still, prices continue to ease, sales activity remains down and properties are taking longer to sell than in October 2021.
"When other real estate brands are losing agents and closing agencies, Century 21 is doing well and retaining its people. In fact, we've just opened a new office in Auckland's Epsom following a solid start by our relatively new Dargaville franchise," says Mr Kearins.
The realty boss says Century 21's expansion in New Zealand reflects the brand's performance and Kiwis positive perception of it.
"Our new franchises are keen to leverage off Century 21's international reach and reputation for superior service. With the doors slowly opening to more migration and more approved residents able to buy, people like the fact that every listing with Century 21 goes global," he says.
He says more now question whether it's time to carefully revisit the Government's 2018 foreign buyer ban. Could it be strategically lifted for some existing housing stock or for parts of the country really needing a capital injection?
"Across New Zealand, the number of residential property sales in October decreased annually by 34.7%. At the same time, the number of new listings nationally was down 4% annually. However, overall stock levels were up 74.7% compared to October 2021, with all regions having more property for sale.
"Let's not forget that Kiwis will always want to move house, and we're still seeing many good properties commanding good money. In my observation, the top end is probably holding its own better. Also, to note is that many provincial areas are holding up better than our cities," he says.
The Century 21 leader says despite the Government making some tweaks to the Credit Contracts and Consumer Finance Act (CCCFA), the hurdles remain too high for many seeking a mortgage. Kiwis need to look beyond the big banks.
"Brokers, like Julius Capilitan of Century 21 Financial, can deliver competitive rates and greater borrowing flexibility than the traditional lenders. Brokers may just provide some light at the end of the tunnel for first-home buyers," he says.
Buyers standing back this spring is to be expected with increasing interest rates, cost of living pressures, and ongoing struggles for many to secure a mortgage.
"All eyes will be on 23 November as to what the Reserve Bank does with the Official Cash Rate. One thing's for sure, for the foreseeable future, borrowing looks set to only get more expensive," says Tim Kearins.