Lower interest rates have sparked a spring resurgence in the housing market, according to Chris Robinson and Alexia Stoddart of Tommy’s Real Estate.
The Wellington real estate market is seeing a renewed sense of optimism, thanks to lower interest rates that have sparked a spring resurgence. Chris Robinson and Alexia Stoddart, seasoned agents at Tommy’s Real Estate, are noticing a clear shift in buyer sentiment.
“There’s a lot more positivity from buyers in the marketplace,” says Chris. “A lot more certainty also. The process of obtaining finance and securing lending is taking longer, with more questions being asked, but buyers are getting there.”
Alexia adds that the Reserve Bank’s recent cut of the Official Cash Rate to 5.25 per cent has prompted a swift reaction from both banks and buyers. “The open home levels have increased, especially in the price bracket up to $1.2 million — which is where a lot of the three-bedroom properties sit that attract first-home buyers,” she explains.
Lower interest rates are a welcome relief across all segments of the housing market, but Chris notes that first-home buyers are particularly active. “The first-home buyer market is the busiest,” he says. “However, those upgrading family homes are seeing now as a good time to make the move.”
Alexia agrees, stating that many first-home buyers had been waiting for interest rates to drop. “This seems to be the area that has increased the most,” she says. “However, those vendors considering upgrading to a bigger home are also starting the process.”
Although the winter months were slow for real estate sales, the market picked up in July, with Wellington’s median house price rising 4.4 per cent year-on-year. Looking ahead to spring, Chris expects the market to remain competitive despite lower stock levels. “By now, we normally see an upswing in new stock,” he says. “However, the stock levels are decreasing at present — meaning the buyers are there.”
With fewer homes available, competition is heating up, and it remains to be seen whether a significant influx of new listings will appear as the weather warms.
Alexia notes that the quality of homes entering the market is improving. “There were a lot of investor properties on the market. Now we are seeing lovely family homes that are ticking the boxes for buyers,” she says.
The higher quality of listings has led to strong sales. “We are achieving great prices for properties, and that is due to the quality of the homes and having multiple offers,” Alexia says. “So the sense is the prices have done their dip, and now the market is stable with signs of improving. It’s a good time to buy.”
She adds that many vendors have come to terms with the fact that the market peak is not likely to return soon. “When you buy and sell in the same market, you can achieve a great outcome,” she notes.
Chris believes the market has reached its low point, and with mortgage rates becoming more affordable, buyers should act before prices start to climb again. “I think the overall feel in the marketplace at present is that interest rates will go down, and prices are likely to improve,” he says. “Now is a good time to try and get into the market.”
While lending restrictions remain tight, Chris advises buyers to be cautious with their offers. “Good homes always sell well, but vendors need to be realistic,” he warns. With growing competition and more interest in the market, there’s a clear sense that Wellington’s real estate is on the upswing.
For buyers and- sellers alike, the current market conditions offer opportunities for those ready to make their move.
Connect me with a local expert
Whether you’re ready to sell or looking for answers, we’ll guide you with data-driven strategy paired with over 20 years of industry experience
Book a free appraisal
