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Sell with us- 4th Jun 2023
Expert insights into the real estate market
Mark Harris, MD of New Zealand Sotheby's International Realty, takes us through the opposing influences and minute-by-minute changes happening in the country's property market and advises 'buyers, it's time to make your move.'
The latest OCR hike is a hurdle for buyers, but hopefully the last.
"We’ve been feeling and saying for a little while that we’re close to the bottom of the market and that buyers waiting for the right moment to secure a property at a good price should make their move. It looks as though we’ve hit that point in recent weeks."
For the full commentary, watch the June Perspectives Property Report here.
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June transcript
I’m Mark Harris, welcome to the Welcome to Perspectives Property report.
Although the latest rate hike is another hurdle for mortgage holders, we’ve been feeling and saying for a little while that we’re close to the bottom of the market, and that buyers waiting for the right moment to secure a property at a good price should make their move. It looks as though we’ve hit that point in recent weeks.
Reinforcing that sentiment is the Reserve Bank’s latest lift of the OCR by .25%, unexpectedly saying it’s done enough to curb inflation and that the pre determined 5.5% will likely be the peak. It’s welcome encouragement for the market as treasury also anticipate interest rate cuts from Quarter 3 2024, which should encourage buyers.
On the sales front, some regions appear to have turned the corner sooner than others with our offices in the Southern Lakes, Palmerston North and Hawkes Bay performing more consistently than other regions.
April figures show a two speed market where Auckland is 15% back on April 2022
However there are some clear signs that this is beginning to turn and the OCR announcement should encourage Auckland buyers once again.
Sydney auction clearance rates have been 70% plus for some weeks and the high end of the market there is seeing significant results, including some outstanding sales by our office in Double Bay. Auckland often follows Sydney so we expect that this market will turn sooner rather than later.
The team across NZ continue to work hard for our vendors and the results are out there to see. Sales include this stunning residence on Queenstown Hill (4B Lynch Lane, Queenstown), this enviable Hawke’s Bay lifestyle home (119A Kaimata Road, Bay View, Napier) and the impressive Halcyon House in Marlbourough (79 Waikakaho Road, Tuamarina)
Some outstanding new listings have also come to market such as 73 West End Road, Westmere, a Ponting-Fitzgerald design. Sitting right on the water, it’s equal parts stunning and serene. And this statement Queenstown residence (1 Tasman Terrace, Queenstown) which is almost as grand as the Remarkables Mountains behind it.
Check them out on our website.