Wellington Market Update | June 2023
The Wellington housing market is shaking off the winter blues with renewed confidence, presenting a favourable environment for both buyers and sellers alike.
“The Wellington winter housing market appears to be following the usual pattern in terms of listing numbers,” remarks Tim Clark, Sales Director at Tommy’s Real Estate. “However, this year, we anticipate a market that diverges from the norm.”
Reflecting on the uncertainties of the past 18 months, Tim considers various factors such as navigating the aftermath of a global pandemic, inflationary pressures, hikes in interest rates, fluctuating property prices, unexpected increases in net migration, improved job security prospects, and an approaching election.
“Despite these challenges, we are currently witnessing a greater degree of stability compared to the turbulent period of the past year and a half,” Tim observes. “Experts indicate that inflation and interest rates may have peaked, and there is consensus among economists that property prices may even begin to trend upwards in the coming year.”
“This unique confluence of factors,” Tim continues, “has led us at Tommy’s to believe that we are in an uncommon phase where it is opportune for both buying and selling.”
Tim notes that the resurgence of buyers into the market is yielding more favourable outcomes for sellers.
“For instance, last month at Tommy’s, over 60% of all sales were concluded under multi-offer scenarios, enhancing the competitiveness of the sales process for vendors with desirable properties.”
“Simultaneously, for buyers,” Tim adds, “this period presents an excellent opportunity to purchase, given the increased certainty and relatively low prices.”
Tim highlights how the uncertainties of the past year and a half prompted some buyers to withdraw from the market. “Initially, rapid price increases were followed by declines, compounded by uncertainties surrounding interest rates and inflation,” he explains. “Now, we are witnessing the return of these buyers to the market, which is a positive indicator.”
“In the last three months—March, April, and May—our city office recorded higher sales volumes compared to the same period in 2022,” Tim reveals. “This trend is highly promising for homeowners and prospective buyers alike.”
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