New Zealands residential real estate market has started a cyclical recovery, which is evident now in rising volumes along with marginal price increases in certain areas, and the days on market seem to be decreasing as well. There is now a shortage of good quality homes on the market as winter prevails, which makes it difficult for first home buyers returning to the market being able to find suitable property. We anticipate gradually improving prices and better activity over the coming couple of years, however there will be some restraint from easing net migration inflows over the next year, the possibility of rising interest rates, higher than normal household debt and a possible structural lift in the savings rate. Many of these factors indicate that timing to buy or sell is better now than it has been for some time, and hesitancy may prove costly.
NB: An overview of Tony Alexander’s (BNZ chief economist) latest Real Estate update
August 02 2011 11:12 am | Uncategorized