“The market continues to remain strong, with first home buyers, and owner occupiers continuing to be active. The investor status has somewhat changed with passive investors coming to the market expecting returns on price increases rather than yield. Inventory levels are down considerably and this is tightening the choice for buyers in general”. Treena Drinnan, Ray White New Zealand Chief Agency Officer.
Over the past 12 months the change in property values have seen the average price across New Zealand rise by 22.8 per cent to an average value of $906,532. In the last quarter alone this is a rise of 7.2 per cent. This is the headline story that continues to drive the property market with interestrates sitting up between 2.2 per cent and 2.5 per cent on a fixed rate basis over 1 to 2 years.
The other key factor is the reduction in overall inventory that is available for buyers to select from when considering purchasing. The recent report by realestate.co.nz shows that the new listings in June totalled 7,769 which was 14 per cent down in comparison to June 2020. That continues to have a corresponding effect where the total amount of property listings on the market in June 2021 is 13,861 which is down 33.3 per cent in comparison to June 2020.