May Residential/Lifestyle Market Report

April marked another great sales month for our team with 9 unconditional sales bringing our total number of residential sales in Kerikeri to 26 for the year. This emphasizes our view that well-presented and well-marketed properties will sell no matter the market conditions. Timelines to sell may be a little longer than a few years ago but buyers and sellers are adjusting to the current market dynamics. The bottom line is there are always plenty of reasons for people to want to move.

While median prices are down from their peak of 2022 they are still tracking above the trend-line for property appreciation which typically doubles every 10 years in New Zealand. In many cases sales are providing better returns on investment than other parts of the country. While this is good news for property owners it can tend to dampen the appetite of those buyers who have sold at large discounts in other part of the country. Those that are moving here and buying are cautiously doing their homework and are selective in their buying decisions. Competitive pricing remains of critical importance in this market where there is a wider array of choices for buyers.

Around 65% of house sales this year have sold for under $1 million up from around 58% last year and 46% in 2022.

Inventory levels are high with 85 weeks of properties available at current sales volumes but are at much lower levels in the under $1millon bracket.

Consequently, the higher price brackets have compressed back on the lower brackets, a bit like an accordion, which is the reverse effect we saw in 2020 to 2022 when the market was stronger for vendors.

Bare land sales are still slow for the third year in a row and consequently building consents are significantly down as people favour purchasing existing homes over building new homes.

All of this is creating opportunities for first home buyers to get on the ladder and for those in a position to “buy up” to do so with capital input and less competition than it may have taken a few years back. Even with higher interest rates, those who can make the change now stand a greater chance of acquiring the bigger property or higher quality home and increasing their equity position in the long term as prices rebound and interest rates lessen.

Pop in for a coffee and a chat about market conditions and opportunities to achieve your property goals with any of our team at your leisure. We hope to hear from you soon.