Buyers Willing To Compromise As Optimism Grows, Says Trade Me Property Survey

A new Trade Me survey of members looking to buy or sell property reveals growing market optimism and the compromises they’d consider to secure a sale.

The survey of more than 1,500 Trade Me members actively engaged in property searches saw 53 per cent agree that now was a good time to buy. However only 23 per cent say they can find lots of properties that meet their budgets or fit their needs.

Trade Me Property Customer Director Gavin Lloyd said buying a home was often a process of crystallising what you really want, with properties that fall within your price range. “Close to 70 per cent of prospective buyers surveyed say it’s a challenge to find something affordable yet there’s abundant supply, so it perhaps suggests a current disconnect between buyers and sellers.”

“My advice to buyers would be to get really clear on what you will and will not compromise on and speak candidly to a trusted real estate agent who can help you with your search,” he said.

The survey found 44.5 per cent of buyers would be willing to compromise on the size of the section, 40.7 per cent on the size of the property, 40.6 per cent on the size of the garden, 33.7 per cent on the condition of the property, 28.1 per cent on location and 25.3 per cent on the type of property.

Pricing and negotiation advice is something many prospective buyers were also wanting more of, said Gavin Lloyd.

“When negotiating be sure to do your homework, talk to agents, have a look at online estimate tools and the likes of homes.co.nz to see what similar properties in the area have recently sold for.”

Mr Lloyd says Spring is often a time when housing market momentum begins to pick up with current listings on site up 38 percent on the same time last year, reflecting increased market activity.

“Buyers are starting to feel more optimistic with interest rates forecast to keep dropping this year and into next and a plentiful selection of homes coming to market.

“However, there’s plenty making buyers cautious including job insecurity, house prices remaining a substantial hill to climb alongside the current cost of living which makes it more challenging to scrape together a deposit.”

Of the buyers surveyed, 45.4 per cent cited cost of living as their biggest concern, followed by lack of suitable properties (42.6 per cent) and mortgage repayments (41.9 per cent).

“Mortgage payments are only half of that coin, then there’s insurance, rates, maintenance and then fixed costs of living come on top,” said one buyer in the survey.

The majority of buyers were looking in Auckland (22.9%) Canterbury (15.9%) Wellington (12.8%) Waikato/Coromandel (7.8%), Bay of Plenty (5.9%), Otago (5.8%) and Manawatū-Whanganui (5.0%).

On the sell-side the main regions homeowners were selling in were Auckland (27.6%), Canterbury (14.9%), Wellington (12.8%), Waikato/Coromandel (8.9%) Otago (6.3%) Manawatū-Whanganui (5.9%), Bay of Plenty (5.1%) and Hawke’s Bay (3.5%).

The biggest concern for sellers was getting the price they were looking for (74.6%). If sellers fail to get offers at their expected price, 32.8 per cent said they would accept a slightly lower offer while more than a third (35.5%) would wait until they got an offer that met their price expectations. Almost a quarter (24.7%) said they would take their property off the market if they didn’t get the price they wanted.

“For vendors, selling their home is a very different experience from selling other big investments such as a car. It’s been an emotional purchase for many and it’s an emotional sale too. This is somewhere they may have raised a family, gone through some major life changes and lived out their dream of home ownership,” says Mr Lloyd.

Of those surveyed, the main reasons for selling were due to relocation (31.9%), downsizing (29.3%), a change in personal circumstances (24.8%), upsizing (23.6%), financial reasons (12.2%) and upgrading (11.3%).

Note:

This survey was conducted by Trade Me during September 2024 and collates answers from 1,500 Trade Me members.

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