Wellington Market Update | January 2024
Buy now if you can!
That’s the advice of Tim Clark, Sales Director at Tommy’s Real Estate, who predicts a buoyant year for the housing market in Wellington.
“We have hit the ground running,” he says. “It’s been the busiest start we have seen in the last two-to-three years, with lots of new listings coming to market and lots of buyer activity. We have sold more this year than we did at the start of January last year, which is a continuation of the trend from the last couple of quarters of 2023.”
The Real Estate Institute of New Zealand’s December property report noted this as well. Chief Executive Jen Baird said December showed a steady improvement in property market activity thanks to stabilising interest rates, the new government announcing more details of its plans, and the arrival of the more active months in the property cycle. “The December figures showed a boost in activity in the market compared to a year earlier. We’ve been observing slow and steady improvement recently and we round out 2023 with continued improvement in sales activity in the market.”
While the national median price decreased month-on-month by 1.9 per cent to $779,830, Wellington’s rose by 1.5 per cent to $807,000.
Tim says it’s not only increased buyer and seller activity that’s driving the market but also a sense of optimism about the year ahead. “Interest rates have likely peaked, and may even start to decrease as the year moves on, and pundits are now citing capital gains of up to 8-10 per cent. It’s also likely changes the new government makes will be more investment-friendly, and even though we will see a lot more listings in the
first quarter, we still don’t see enough good quality property coming on to the market to satisfy current demand.”
Tim notes that demand spans all price points and property types. “However, we believe that investors will return to the market in 2024 and this will heighten demand, making buying a more competitive process as the year progresses.
I would advise buyers to buy now, as this is one of the best times I have seen over the last few years for buyers. Prices have plateaued, interest rates are likely to start to ease, and capital gains are likely to start again. If you can afford to buy now, do so — because for the first time in a long time, it is more likely that home ownership, from a financial standpoint, will get easier, not harder.”
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