March is nearly over and summer is starting to fade away, but homes are still selling. We predicted that house prices would drop and true to that, this is starting to happen. However, that is not stopping people from selling their homes. In fact we are finding that we are still selling homes for close to our vendor’s expected price. We have some beautiful homes on the market and recent open homes are proving that there are still buyers out there. Our recent Saturday open home saw numbers reminiscent of the peak of 2021. Currently, the market in Christchurch is relatively stable, so it is still a good time to sell your home.
There are many things that could impact the real estate market in 2023. Not only is there the expected recession, 2023 is also an election year, and furthermore, interest rates are not going down anytime soon*. Even though the GDP dropped 0.6% in the last quarter, we still need it to drop again in the next quarter for New Zealand to be in a recession. With that still to come, we may find that we can expect a true real estate winter this year. *For the first time since pre-COVID.
The most recent statistics from TradeMe surprisingly show that listings were up 29% this January compared to January 2022. We are in a true buyers’ market and this brings us around to a couple of the 5 variables of real estate, supply and demand. Supply is definitely increasing and demand is starting to fall nationwide (based on the past 4 weeks of TradeMe data). There will always be less demand when inflation and interest rates are high.
It is definitely a good time to sell, and I would encourage vendors to do so if they can, especially as we can likely expect a true winter in the real estate market this year. A great agent will have a great strategy. They will understand the current market and be willing to have open and honest conversations with you if you find that your home is not getting the interest expected. You need a true professional alongside you, providing you with constant updates on potential buyers, price recommendations, and advice around potentially lowering price expectations when the market is not doing as expected. They need to be diligent, knowledgeable, a skilled negotiator, and up front and honest with you throughout.
Any agent can log into TradeMe or realestate.co.nz and put up an ad, but in times like this, you want an agent who is going to add value, present your home immaculately with quality staging and marketing, and know what price guide to put on it.
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Nathan Najib