Wellington’s Housing Market Heats Up: Price Rises and Spring Surge Spark Renewed Buyer Interest
As Wellington enters spring, the housing market is showing clear signs of recovery, bolstered by consecutive monthly price increases, lower interest rates, and improving weather. Buyers are responding positively to these developments, reigniting demand and sales across the region.
In August, the capital’s median house price climbed by 3.7%, reaching $790,000, according to the Real Estate Institute of New Zealand. This marked a continuation of the upward trend, following July’s 4.4% increase to $765,000. Wellington has become one of the top-performing regions in the country.
Stock levels are also on the rise, with a CoreLogic report revealing a year-on-year increase of 20-25% in the number of properties available.
Alexia Stoddart and Chris Robinson, top agents at Tommy’s Real Estate, have seen this resurgence reflected in their own listings.
“We are seeing more properties coming onto the market now that spring is here,” says Alexia. “We’ve got some fantastic family homes available.”
Chris echoes this, noting that while stock levels are slightly higher than in previous months, this is to be expected as the market moves into summer. “At the moment, we still have fewer homes available than at the start of the year,” he adds.
Interest rates have played a key role in revitalising the market. The Reserve Bank’s recent cut to the official cash rate to 5.25% has been well received by buyers, and Alexia points out that banks have become more flexible in their lending practices.
“With declining interest rates, buyers are gaining more confidence to enter the market,” she says. “This is what many have been waiting for, and they’re now seeing the light at the end of the tunnel.”
Despite ongoing concerns around job security in Wellington, Chris believes people are starting to feel more settled in their employment, which is translating into increased market activity.
“The first-home buyer market is particularly strong, with more competitive offer situations emerging,” he says. “This is likely to push up prices for more affordable homes.”
Spring traditionally brings a flurry of activity, and this year is no different. Better weather tends to get more people out and about, but Chris remains convinced that interest rates and job security are the most significant factors driving buyer behaviour.
Alexia expects this spring to surpass last year in terms of both house prices and sales.
“It’s been a busy time, with fantastic homes coming to market. Buyers are keen to take advantage of the lower interest rates, and we’re seeing increased enquiry levels and strong attendance at open homes. Many buyers already have their finance sorted with pre-approval from their banks,” she explains.
Chris agrees: “There’s definitely more certainty and stability in the market. Buyers are facing challenges, with more questions being asked by lenders and insurers, but deals are coming together.”
However, one notable trend is the decline in building consents for new homes. This raises the question of whether existing homes will become more desirable due to the scarcity of new builds.
“There will always be buyers who are happy to take on a project,” says Alexia. “But homes that are ready to move into are certainly attractive in today’s market.”
Chris also highlights the rising costs of renovating and building, which are making many people reconsider their options. “We’re seeing clients with consents to extend or renovate who then reassess after getting quotes. More are choosing to move or buy existing homes rather than take on the expense of building or renovating. This could lead to a shortfall of new homes in Wellington.”
With the market on the rise, buyers are taking advantage of the opportunities presented by lower interest rates and a more stable employment environment. As spring progresses, Wellington’s property market looks set for a strong season ahead.
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