NEWSLETTER | OCTOBER 2023
NORTH SHORE MARKET UPDATE
An insight into what is happening in your area. CONFIDENCE APPEARS TO BE RETURNING According to the September 2023 figures released by the Real Estate Institute of New Zealand (REINZ), the spring property market is witnessing increased activity, with prices showing signs of stabilization, rising sales counts, and properties selling in shorter timeframes. Jen Baird, the Chief Executive of REINZ, notes that September typically brings a surge in positivity and activity as the warmer months approach. She comments, "September reveals that the 'green shoots' seen in previous months are flourishing. Confidence in the property market is on the rise, and there are clear indications of an upward trend." The median price on the North Shore now stands at $1.250 million, up 31.6% from last year. However, it's important to note that this figure was skewed by apartment sales in September last year, which brought the median price down for the region. The median price has been on a consistent rise since March, indicating that we've passed the bottom of the market. There has been a remarkable 9% increase in the median price since March 2023, reflecting a strong and stable real estate market. In terms of the impact of the recent general election on property investors, there has been some media speculation suggesting a positive influence, with more people considering property purchases, indicating that while more investors are expected to enter the market as buyers in the near future, there will also be an increase in sellers. Furthermore, the most immediate consequence may be felt by first home buyers, who could realize that time is running out for them to make a purchase without facing intense competition in tenders and auctions. This is supported by the data, which shows a record 28% of recent sales going to first home buyers according to the Core Logic buyer classification measure.
Carla O'Neil Licensed Salesperson REAA 2008
P 021 559 348 E carla.oneil@harcourts.co.nz W www.carlaoneil.co.nz
The surge in investors looking to sell, driven by the combination of changes in the brightline test and the restoration of interest expense deductibility, could be attributed to the general election outcome. Additionally, factors such as booming population growth, increasing tourist numbers, and a decline in new house construction will intensify the motivation for young individuals to secure their own property in the coming year. When Is the Right Time to Buy? The million-dollar question – when is the best time to buy? The answer is simple: the best time to buy is when you find the house you love, and it's at a time you can afford it. The market has its ups and downs, but a home that you adore is priceless. Homes are moving faster than ever, with the average days on the market for September down to 36, compared to 45 this time last year. It's a competitive market out there, so act quickly if you find your dream home! If you have any questions, please feel free to call me anytime. Until next time,
Carla