October marks a record month for house sales: Tommy’s Real Estate agents optimistic about the summer market
October proved to be a record-breaking month for Tommy’s Real Estate, with top agents describing themselves as “cautiously optimistic” about what’s to come this summer. The outlook is positive, as vendors prepare their properties for sale, and agents are predicting a rise in listings during the months of January and February.
Alexia Stoddart, one of Tommy’s leading agents, explained: “We had a record month for October, with many of the sales being unconditional, which is particularly encouraging as it suggests strong buyer confidence.”
Chris Robinson, another key figure at Tommy’s, confirmed the trend, noting that the office completed just under 100 transactions last month. “We are seeing more listings coming onto the market, but there’s also a strong buyer presence,” he added.
In fact, according to the Real Estate Institute of New Zealand (REINZ), Wellington’s housing market saw its highest September sales count since 2011. Year-on-year, new listings in the capital were up by a remarkable 36.1%.
Alexia further observed that Tommy’s was still actively listing properties, with large family homes, including four-bedroom, two-bathroom houses, being particularly popular. This fits with the broader market trend, as Wellington’s annual median house price in September increased by 1.6%, reaching $792,500.
“The most active group of buyers right now are first-time buyers,” said Alexia. “We’re also seeing a slight uptick in enquiries from investors.”
Interestingly, REINZ reports that most vendors’ expectations are in line with current market conditions, with many willing to meet the current market levels. Several factors are contributing to this positive sentiment, including media coverage of the market’s recovery, rising council rates, and a noticeable increase in investors selling off properties.
Investor Confidence Returning
Chris noted that there’s a growing sense of optimism among buyers, particularly investors, who are beginning to return to the market. “There’s a general feeling that we may have reached the market ‘bottom’, and both investors and homebuyers are eager to act before the market shifts further,” he said.
Alexia also pointed to a noticeable uptick in attendance at open homes in October, with more buyers now prepared to make offers on properties they like. “Buyers are entering the market with pre-approvals in hand,” she explained. “They know they’ll likely face competition when making an offer, and being able to offer unconditionally puts them in a stronger position.”
The anticipation that the Reserve Bank may cut the Official Cash Rate (OCR) this month is further fuelling market confidence. If this occurs, it could prompt those buyers holding off to finally take the leap onto the property ladder.
The Market Shifting to a More Balanced Position
“There’s certainly a shift happening,” said Chris. “We’re seeing more homes being sold in multiple-offer situations, which shows the market is moving towards balance. It’s no longer a buyer’s market; instead, both buyers and sellers are negotiating in line with current market conditions.”
While there are still opportunities for buyers to secure great deals, the market is becoming more competitive. “We’re still achieving strong sale prices,” Alexia said, “but buyers are being more discerning. They’re taking their time to make decisions, which means selling can sometimes take a little longer, but the end result remains positive.”
Suburbs in Demand: Where Are Buyers Focusing?
City-fringe suburbs such as Brooklyn, Kelburn, Northland, and Newtown remain in high demand, but Tommy’s agents are seeing strong interest across Wellington’s broader region. “The Eastern suburbs are also performing well,” Alexia said, “and Island Bay is currently one of the most searched suburbs on TradeMe.”
Chris added, “Character homes that are well-presented always attract strong interest. The city-fringe suburbs continue to be popular, but we’re also seeing an increasing interest from younger professional families seeking a coastal lifestyle in the southern suburbs, especially as they enjoy the outdoor activities on offer.”
Looking Ahead
The team at Tommy’s is optimistic about the future, with a more balanced market providing opportunities for both buyers and sellers. While interest rates may remain a concern for some, the outlook is generally positive, and agents are hopeful that the coming months will see further growth.
“Ultimately, the market is showing signs of stability,” said Chris. “With lower interest rates, a positive buyer sentiment, and continued demand across a range of property types, we’re excited to see what the summer will bring.”
As always, Tommy’s Real Estate is ready to assist both buyers and sellers with navigating the ever-changing market, providing expert advice and support every step of the way.
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