Markets don’t move in straight lines and the housing market is no exception.
There are periods of time when a lot of people buy houses, driven by a Fear Of Missing Out or FOMO (think 2021!) that someone will buy the property they want before them, and there are periods of time when hardly anyone buys houses, for Fear Of Over Paying (FOOP).
Just like trying to predict the weather (good luck in NZ!) people are always trying to second guess the property market in terms of what it is doing and when the best times to buy and sell are.
Markets are driven by human emotions, and like most things, require us to take a step back and put things into perspective. A lot of New Zealanders tend to look at houses firstly as an investment. The reality is that although houses might be an investment they serve, for most people, a much more important function as a place to live and call home. We all know that shelter is a basic human need.
Confusion between purchasing property as an investment versus a home can make for some poor decisions when it comes to buying and selling a home.
Currently, New Zealand house prices are dropping, and it is likely they will continue to drop for most of, if not all, of this year and maybe even next and the one after and so on. The reality is that no-one really knows. There are many reasons why house prices fluctuate, however that is beyond the scope of this article. Most people would agree that house affordability in New Zealand is pretty bad at the moment even with prices stabilising. However, the housing news is not all bad. Tony Alexander, an independent economist pointed to results from recent surveys showing that first-home buyers are moving back into the market, looking to take advantage of available listings and changes to the prices of property, in spite of mortgage repayment affordability.
First-home buyers typically are looking to buy property as family homes rather than an investment. If you are in the market to purchase your first home then get in contact with our friendly and experienced conveyancing team to find out how you can take advantage of our first home buyer fixed fee package.
House sales might be changing but this change won't last long. The housing market is experiencing change and Godfreys Law has a first-home buyers package so you can make the most of the current market.
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