Property Listings Up, Interest Rates Down

Media reports are coming out fast and strong claiming that there has been a surge in property listings and making all sorts of predictions for residential property in the year ahead.

This increase number of property listings, coupled with a drop in asking prices and lower mortgage rates have created what is referred to as a buyer's market. Assuming of course thar buyers have confidence in long-term job stability and economic growth.

Kate Chivers from Turner Hopkins reports that sales through January and February have increased compared to the same period last year, with many sellers being more flexible on pricing and accepting lower than expected offers. This price reduction is often offered in exchange for quick completion of buyer due diligence and a short settlement period. Kate suggests that vendors are eager to move on and have accepted that a lower sale price may be necessary to make their next move a reality. Meanwhile, buyers are active in the market and those not involved in a property chain and able to secure financing quickly can secure favourable deals.

According to a recent property report, the number of homes on the market in January reached the highest level in a decade, with 32,412 properties available. This was 5,000 more than the 27,261 properties for sale in January 2024. Sarah Wood, CEO of Realestate.co.nz, noted that this was the highest stock in January since 2015. Auckland saw the largest number of listings, with over 11,465 properties available, a figure not seen since 2012. Realestate.co.nz also reported that current Auckland listings are at a 13-year high. The next OCR (Official Cash Rate) move is likely to boost buyer confidence, particularly in a market that has been relatively flat.

Kate’s advice for sellers right now is “be realistic”. Ensure your property is presented in a way that makes it stand out from the competition, be commercially savvy, and remain persistent. Well-priced, well-presented properties are selling quickly. If the price is not where you expected it to be, consider where you can make up the difference. Perhaps a lower priced offer on your next purchase?

For buyers, our advice is to do your homework. Be fully prepared when making an offer—know your numbers, and consult with your lawyer, accountant, and mortgage broker before proceeding. If price is a sticking point, consider satisfying conditions quickly and proposing a fast settlement to entice the seller into accepting your offer.

At Turner Hopkins, we have over 100 years of experience helping first-time buyers, property ladder climbers, sellers, and developers. Whatever your property needs, talk to one of our experts today.