As we fast approach the new year, many people may have decided after years of saving, and hearing some highlights on the news, that this may be the time to buy. Others could look at the shifting market and think that we have reached the peak and its time to sell, but before you get excited and make big decisions, we decided to look at where the market is heading in the new year.
Looking to Buy?
This year has been a great one for first time buyers with low unemployment, strong job growth, steading population growth and the LVR restrictions being loosened again on 1 January 2019, we look to be entering into a very stable market in the new year for first time buyers, in addition we have seen record low-interest rates that have reached below four percent, with banks competing to entice first-time buyers. All this good news can be music to the ears of those on the fence looking to buy.
And it is a great time to buy, but your property dreams will still need to be realistic and within your budget, as the market is still strong, and houses within the main city center are still reaching record high selling prices. But don’t let that deter you from buying as trends have shown that first-time buyers are having huge success out in suburbs such as south and west Auckland. As always, we suggest consulting with a mortgage broker to figure out the best course of action and plan out which steps to take next.
Looking to Sell?
Those looking to sell could be looking at some of the recent high QV reports and assume the market is strong and could continue to grow, other skeptical people may think the bubble is about to burst, but which is right? The answer is that the market is strong and looks to have found its perfect plateau. Many experts have stated in the last few months, that the current market isn’t going anywhere soon, and the current conditions are perfect for selling
Auckland houses took a median 36 days to sell in the last couple of months, one day less than the same time last year but two days longer than the rest of New Zealand. House listings have also been extremely active this year, and with low yields and more enticement from banks and the government to get Kiwis into homes, there is no better time than the present.
A recent report from CoreLogic has also backed up these claims, showing that New Zealanders are still making plenty of money when they sell their home. The report revealed that $3 billion in gross profit was made from house sales during the July to September quarter and that 96 per cent of all properties made a gain – that’s a median gain of $180,000 per property.
So waiting may not be worth it in the long run, but also it seems there is no rush to sell if your fears lay in the market collapsing.