Industry view: There’s momentum in the market
Josephine Kinsella, Managing Director of LJ Hooker and Harveys Group, sat down with OneRoof.co.nz recently to share what buyers and sellers should expect in the coming months.
January saw a significant increase in the number of residential properties coming on to the market across New Zealand, suggesting a reasonably steady season ahead. Average asking prices declined slightly in many regions in January compared to December. On the whole, property prices seemed steady across the country towards the end of January, with some resurgence in parts of Auckland, Dunedin, South Canterbury and the seasonal hotspots of summer.
With an election year ahead, 2020 may well see the market keep steady with an occasional burst of energy possibly bucking traditional trends. Often, however, the election month is the one time where the market takes a breather.
Interest rates are historically low and not looking likely to increase and the supply of homes in key locations remains lower than the demand. There has been a slight influx of investors returning to the market but mostly in provincial regions with good returns.
The market, despite regulatory pressures slowing growth, seems to have the demand to keep pushing through, and first home buyers have certainly jumped on the ladder to commence the year of investment.
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