Wellington RVs Killed in Skydiving Accident?

... You might think so after reading yesterday’s Herald drama-infused headline...

Crikey… plummeting and no one unscathed? Better read on, lol.

The article states:

• On average, house values have dropped 24.4% since 2021.

• Capital values have fallen across every suburb, ranging from 12.1% to 29.3%.

• When these were last set in 2021, the market was rising rapidly, fueled by record-low interest rates. It then experienced steep declines in 2022 due to higher interest rates and tighter credit conditions.

Here’s the missing piece that mainstream media might struggle to say:

• Concerned about the pandemic, the government printed around $71 billion and pumped it into the economy. Interest rates were cut, credit conditions loosened, and—combined with FOMO and limited travel options—this created an overinflated housing market.

For those who like a more cinematic adaptation:

Imagine this: the property market go-kart was loaded with printed money and taken to the top of Baldwin Street—New Zealand’s (and apparently the world’s) steepest street. Riders (possibly without helmets) jumped in. Interest rates were slashed, LVRs removed (read: the brakes came off to fit more money in), and the hollering of FOMO echoed (read: a few rounds of shots were taken before riders fist-bumped and launched).

Then came the ride:

• The Wellington market surged nearly 28% in 2021, peaking in November. Oh, and RVs were set in September.

The key part missing from the headlines:

What happened next was predictable for those who understood the setup:

• This artificial property bubble wasn’t driven by economic fundamentals (population growth, income growth, employment growth, etc.). Nope—just money printing, loose lending, and FOMO.

So, when settings were reversed and the banks (read: Dad’s cheque book) shut their wallets, the go-kart—now airborne—had to come back to earth.

Here’s the uncanny bit:

Yes, other economic factors played a role, but in a nutshell:

• In 2021, Wellington prices jumped 28%. RVs were set in September, and people felt great—on paper, their homes were worth more. (It’s also worth noting that a genuine market up-cycle had just happened between 2015-2018, with values rising over 50%.)

• Three years later, RVs have been redone… and they’re down 24%—eerily close to the 28% rise in 2021. So, after this three-year rollercoaster, Wellington values are only a few percent ahead of where they were before.

Finding your new RV:

Want to see your new RV before the letters arrive? Check the council website under property search or click here.

How to get good sale results now:

Today, we put a house under contract with strong interest—28 buyers through in three weeks, far more than many other properties. No plummeting, no scathing involved.

We started in real estate just after the GFC, building a business in a tough market where it wasn’t the market that sold homes, but the knowledge, experience, systems, and work ethic of the agents.

Now, with more listings coming on and houses sitting, our experience is proving invaluable. We haven’t had a single withdrawn or unsold listing in over two years—every property sold, and with strong results, despite the headlines.

Need advice?

No need to delay your plans over dramatic headlines. If you’re thinking about moving and want an assessment, get in touch for a no-obligation chat about how to get sold for a good price.

📞 027 518 0008

📧 leonie.snook@harcourts.co.nz

No sales pitch, no fuss—just service!