Wellington Market Update | April 2023
Nicki Cruickshank, Director at Tommy’s Real Estate, reflects positively on recent developments in the property market, particularly noting the resurgence of first-home buyers.
“It’s heartening to see more first-time buyers entering the market and achieving their dream of homeownership,” Nicki remarks. “After facing steep price increases during the COVID years, their return has been steady.”
She observes, “Families, too, have started to take action after a period of hesitation, looking to upsize or downsize in what they perceive as a more stable market.”
However, Nicki expresses concern over the lack of investor activity, highlighting broader implications for property values and rental costs.
“The absence of investor activity is worrying, especially for a city renowned for its universities and student population,” she explains. “This trend has led some students to seek accommodation in cities like Christchurch or Dunedin, where costs are more manageable.”
Nicki acknowledges recent shifts in government policies, such as changes in tax deductibility for landlords and rising mortgage rates, as factors affecting the market.
“The recent 50 basis points increase in the Official Cash Rate by the Reserve Bank came as a surprise,” Nicki notes. “While it may delay the market’s peak, competition among banks and a lack of recent activity suggest that interest rates may start to decline by year’s end.”
Despite higher interest rates, Nicki remains optimistic about the market’s potential for buyers and sellers alike.
“Now is a favourable time to buy,” she advises. “Whether you’re a first-time buyer or looking to move within the market, conditions are less competitive, allowing for offers with conditions that ensure sound decision-making.”
Looking ahead, Nicki predicts a stable market in Wellington for the foreseeable future.
“It’s time to take action,” she concludes. “If you’ve made the decision to move, seize the opportunity. Long-term, you’ll find it a rewarding decision.”
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