Buyers and Investors Seize Opportunities as the Market Heats Up

 If you’re contemplating an upgrade or purchasing your first home, now is a great time to assess market conditions that could work in your favor.

Across New Zealand, listings have surged to record levels, while the Official Cash Rate (OCR) has dropped from its July peak of 5.25% to 4.25%. The Reserve Bank of New Zealand’s aggressive rate cuts have helped put desirable properties back within reach for many buyers.

From our perspective as seasoned real estate professionals, the market appears to be shifting. The challenges that have frustrated first-home buyers and those looking to upgrade over the past two years are beginning to ease, and we’re seeing an uptick in activity.

Recent data suggests property transactions in November were 9% higher compared to the same period in 2023. Whether you look at national trends or focus on local insights, there’s a clear rise in buyer confidence and seller engagement.

For those looking to purchase, there’s even more good news—housing supply has outpaced recent years. CoreLogic reports that over 30,000 homes were on the market at the end of 2024, marking a 25% increase compared to the five-year average. This influx of listings contributed to a slight 0.4% dip in average property values in November, bringing prices down by 5% since February’s mini recovery.

However, these favorable conditions for buyers may not last indefinitely. Lower borrowing costs often fuel stronger competition, and CoreLogic projects a 5% increase in property values this year. While this growth is considered moderate, it can still translate to significant sums, especially for buyers navigating high-value transactions.

For those upgrading, this could be an opportune moment. While your current property may not achieve its peak valuation, the potential savings on your next, larger purchase could outweigh any shortfall.

Investors are also making moves, now accounting for 23% of buyers. Market conditions vary across regions, with cities like Wellington, Auckland, and Hamilton offering good buying opportunities due to high listing volumes. Auckland, for instance, has seen a 10% increase in home sales compared to last year. Meanwhile, Christchurch and Dunedin are leading the recovery, with values expected to gain momentum in the months ahead.

If you’re thinking about selling to move into a larger home, the timing could be ideal. The combination of increased supply, lower rates, and improving market confidence presents an excellent opportunity to make your next move.