This year New Zealand has seen a multitude of trends arise in the property market.
New Zealand house prices have experienced their largest drop in a decade, raising some hopes of a cooling market for those who have been locked out of property buying due to expensive property prices. House prices reached a peak in November 2021. After this they fell by 17.80%, appearing to bottom out in May 2023. Since bottoming out New Zealand house prices have increased by 3.90%.
In the 12 months leading up to October 2023, New Zealanders bought 61,513 properties. This means that New Zealanders are currently buying 2,750 more properties per year compared to the bottom of the market.
Despite this, due to an increase in interest rates, the generally higher cost of living and tougher lending rules, those with lower incomes are still struggling to join the property ladder.
On the other hand, at the higher end of the market, we are seeing more interactions with offshore buyers looking to invest. Buyers at the high end are more and more in search of smarter buildings. These buildings will perform well as well as look good. This demonstrates that investing in high-quality property will never go out of trend.
In terms of the future, it is expected house prices in New Zealand will rise by 8 per cent in 2024.
Are you a first-time buyer looking for a mortgage broker in NZ? We make your journey to homeownership as seamless as possible. We can give you advice on different properties that take your fancy, help you do your due diligence to avoid making any costly mistakes and of course, get you the best possible deal on your mortgage from a bank that best suits your needs. Get in touch with us today.
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