Wellington 🏠 Buyer Interest Is On The Up!

In housing markets, when confidence and sentiment goes down more people tend to put their selling and buying plans on-hold, where they can, which delays intended moves. Then when confidence and sentiment improves people who are on the sidelines or in the shadows tend to come back into the market to get back underway.

The Reserve Bank’s first official cash rate (OCR) cut mid-August of 0.25%, and major bank’s interest rate cuts since, has improved sentiment a bit and open home numbers have risen noticeably as we’ve left winter behind and entered spring. The OCR will be reviewed again on 9th October and 27th November, with further similar reductions expected. This will further solidify the sense of improving market sentiment.

With 3 client properties sold in the last 4 or so weeks, some coalface observations on these sales give good clues as to where things are now:

• Interest in buying has increased – buyer groups through these properties averaged 41 groups (highest was 63 groups)

• It’s becoming more competitive for good properties – the average was 5 offers (highest was 8 offers)

• From our many conversations, buyers are indicating that banks seem a bit more favourable to deal with than before on their lending applications

• Buyers that have been around for a bit are sensing things bottomed out in the market and are turning, i.e. – all 3 properties sold cash unconditional

• There’s a good amount of stock on market and buyers doing their research are attending multiple open homes, often 5 or so in a weekend – the right property presentation and marketing is crucial for attention and interest

• We’ve also seen a sharp pick-up in requests for advice and updated appraisals over the last couple of weeks from potential sellers, weighing up the spring and summer ahead of them and looking to come off the sidelines.
  

I met with a buyer this week who was going back to check over a property they have purchased ahead of their move-in. They were visibly excited and I was excited for them… that’s because buying a house and moving into a new home is exciting!! And for sellers it opens a new door as they also move to a new place and/or reduce some obligations and gain the feeling of freedom that comes from that. It’s nice to be back in a more stable market now where people are pushing go on their personal plans and moving forward, as that’s what we are here to help with - expert advice for great results and no stress.

For a chat or updated price opinion on your property in today’s market get in touch by email, text or call. No fuss, no sales pitch, just service (leonie.snook@harcourts.co.nz or 027 518 0008).