After 18 months in retreat, there are indicators New Zealand’s home costs might have bottomed out.
Data from the Real Estate Institute of New Zealand (REINZ) launched on Tuesday present a modest uptick of 1.4 per cent on the median worth of properties offered final month.
The nationwide median home value was measured at $NZ775,000 ($A716,000) in March, up ever so barely from $NZ765,000 ($A707,000) in February.
REINZ chief govt Jen Baird mentioned she wasn’t but assured the trough had been reached.
“We really only know that we have reached the bottom of the market when we’re looking at it in the rear vision mirror,” she mentioned.
“There is no denying the economic challenges that continue to impact the housing market this year.”
Fuelled by basement low rates of interest, home costs peaked in November 2021 at a median value of $NZ925,000 ($A854,000).
The peak-to-trough fall of 16.8 per cent correlates nearly precisely to the Reserve Bank’s tightening cycle, which started in October 2021 and shifted the official money fee (OCR) from 0.25 per cent to five.25 per cent.
With inflation working at 7.2 per cent, Kiwis are struggling by way of the identical value of dwelling challenges that Australians are.
“People start to look at the economic conditions around them and make choices about whether they want to take any kind of risk,” Ms Baird mentioned.
“And with talk of a recession, it makes people really consider whether now is a good time.”
Ms Baird additionally mentioned Kiwis tended to remain out of the housing market throughout election years as a result of uncertainty of the end result.
The individuals getting concerned are these “trading up or retiring to the beach” and first dwelling consumers.
“What we hear from agents across the country is that occupiers moving to another owner-occupied house are predominant force in the market,” Ms Baird mentioned.
“And more activity around first home buyers, people are looking at this market and going ‘interest rates are still really challenging … but those prices are something that I feel really good about’.”
The steepest drop-offs within the nation over the previous 18 months have been in Wellington (down 24.8 per cent) and Auckland (down 22 per cent).
Auckland’s median home value fell marginally by 0.4 per cent in March however stayed simply above the magic million mark, at $NZ1,000,600 ($A924,000).
Source: www.perthnow.com.au
