Wellington Market Update | July 2023
Buyers who are recognising the current opportune moment for purchasing property are encountering lower-than-usual stock levels, according to Tim Clark, Sales Director at Tommy’s Real Estate.
“The latest nationwide data indicates a decrease in new property listings, yet there is heightened activity within the market,” Tim observes. “Buyers are increasingly active online during May and June compared to last year, with a notable increase in attendance at open homes and more instances of multiple offers occurring at the time of sale.”
Tim highlights a shift in buyer behaviour influenced by reduced stock levels, noting that properties previously overlooked are now under consideration. “Buyers are indicating that the combination of lower stock and favourable buying conditions has broadened their property search criteria,” he explains.
Consequently, Tim notes a gradual rise in the Fear of Missing Out (FOMO) among buyers, paired with a decline in the Fear of Overpaying. “At Tommy’s, we are witnessing more buyers who are prepared to make swift purchasing decisions once they find a suitable property,” he adds.
For vendors contemplating listing their homes, Tommy’s advice emphasizes consideration of individual circumstances. “If you have been contemplating selling this year, now presents a favourable opportunity,” Tim advises. “Current market conditions are characterized by reduced competition among vendors, coupled with increasing buyer confidence and activity.”
“As the weather improves and market sentiment strengthens, competition among vendors is likely to intensify,” Tim continues. “We are observing stable pricing dynamics, even in multi-offer situations, where offered prices are closely aligned. This signifies a balanced market where property values are holding steady.”
Tim underscores that various factors can influence a property’s sale price, such as deferred maintenance or incomplete consents, which may impact valuation. “Well-presented properties, effectively marketed and competitively priced, are attracting multiple offers and achieving successful sales,” he asserts.
While buyer activity is rebounding, Tim notes a current absence of investors in the market, anticipated to persist until after the general election in October. “Both vendors and buyers are expressing a preference to proceed with transactions rather than wait for election outcomes,” Tim acknowledges.
“The relative stability of the current market underpins this sentiment, although investor interest is likely contingent on post-election conditions.”
In conclusion, Wellington’s real estate landscape is witnessing a resurgence in buyer activity amidst constrained supply, presenting a strategic opportunity for vendors to capitalize on current market conditions before potential shifts post-election.
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