If you’ve felt a shift in the market in the last couple of months, you're not alone.
In the past 70 days total listings in Lower Hutt have dropped 20% down to 424. That makes me ask:
Have we reached the bottom of the market?
Will prices start to rise?
Are we back to FOMO?
Is this the end of the buyer's market?
I think the answer to all of these questions is probably ‘not quite yet’.
The most likely factor leading to this sudden fall in stock is the approach of winter.
Typically listing numbers follow a seasonal trend, rising towards Christmas and pulling back heading into June – July.
Even so, every change in the market brings changes in the dynamics for first home buyers. Let’s break down what these changes could mean for you.
Less options
It may seem obvious but it’s important to highlight that a drop in listings means less homes for you to choose from.
Let’s say you are searching for a three bedroom, standalone home in the Lower Hutt.
A couple of months ago there may have been 20 that fit your description.
But now there may be 16.
New Builds
Still plenty of townhouses to purchase off the plans.
Completed new builds are harder to come by and we are seeing them get snapped up at increasing speed.
Higher demand
Naturally, if the number of homes in your target zone are down, that’s likely the case for other buyers too.
Less supply = greater demand and more competition.
Less leverage
We are still well and truly in a buyers market.
Sales are still slow.
There is a fraction of active buyers compared to pre housing boom levels.
Getting access to finance is still difficult for many.
But, these conditions won’t last forever! Conditions look to be tracking us back to a more balanced market. So, our advice to buyers now?
Make the most of the leverage you have right now because you don’t know when the conditions might change again.
Get your finances in order
Research Kāinga Ora options
Get out and attend more Open Homes
Be brave and put in that offer!
To summarize, a drop in listings means less options, higher demand and less leverage. If you’re pre-approved and ready to go, maybe this is your sign to take the leap.
Hi I’m Hausia,
I help first home buyers make better buying decisions.
If you want access to arguably the best off-the-plans mortgage advisor in Lower Hutt, click ‘contact us’ below or head straight to his website here.
If you have any questions about something you've read in the blog, email hausia@faisandier.group.