February Provides Real Estate Window Of Opportunity

“February is off to a good start with real estate activity more noticeable and good properties still commanding great prices. In fact, both buyers and sellers are now seeing a real window of opportunity,” says Tim Kearins, Owner of Century 21 New Zealand.

Tim Kearins, Owner of Century 21 New Zealand

His comments come ahead of the Reserve Bank announcing the next Official Cash Rate on 23 February, with the consensus being interest rates will continue to rise.

“Buyers and sellers are using this period well, with now arguably a good time to talk to a broker or bank about mortgage rates. Buyers who managed to get lending pre-approval before the Credit Contract & Consumer Finance Act (CCCFA) changes took effect on 1 December also remain in the market and motivated to secure a property this month,” says Mr Kearins.

The Century 21 leader says all eyes will be on the Real Estate Institute’s Monthly Property Report for January out next week. December’s national median house price saw a 1.6% price decrease when compared to November, with January also expected to show some market softening.

“The CCCFA has meant banks now need to conduct ultra-conservative assessments on all new borrowers. What’s more, Reserve Bank restrictions see many fewer first-home buyers now allowed to borrow more than 80% of a property’s value.

“Such factors are adding some downward pressure particularly in the first-home market. However, section sales are in high demand and most top end homes continue to achieve great results,” he says.

While auction activity for the industry is generally down, Mr Kearins says strong buyer demand remains, with an overall shortage of listings nationwide. This in turn is constraining sales volumes.

He says Century 21 salespeople report that most vendors taking the plunge this summer have been pleasantly surprised by the level of interest and the results achieved.

“Buyers realise now is good time to act with interest rates only set to rise and borrowing increasingly harder to achieve. A greater percentage of houses now for sale by negotiation is also giving buyers a better chance to line up their finance and land their dream home,” says Mr Kearins.

www.century21.co.nz

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