Feature article
NZ property market buyer and seller insights
We surveyed 1500+ Kiwi to understand the current buyer and seller mindsets and trends; and what that may mean for you.
Overall market outlook for Spring 2024
Prices are lower, there’s a huge number of properties being listed and vendors have reduced price expectations… But despite feelings on the market remain mixed - 53% of Kiwi believe it’s a good time to buy.
Despite 53.1% saying it’s a good time to buy, only 23.6% of buyers say they are able to find lots of properties that meet their budgets or fit their needs.
What this means: There may be more properties being listed at certain price points. Looking at your local market and pricing a home slightly outside those might help it move faster, if that’s a priority for you as a seller.
Interest rates are commonly cited as the reason that someone says that it’s either a good or not good time to buy.
What this means: For sellers: this indicates that mortgage rates staying the same or going down will likely have a reasonably significant impact on buyer confidence to transact, and may help you to price accordingly.
OVERALL MINDSET: 53.1% feel that it's a good time to buy I 23.6% of buyers say they are able to find lots of properties that fit their budgets and needs
There’s a gap in perceived value between buyers and sellers
Buyers are concerned about ongoing affordability, and quality of stock available.
Sellers are concerned about getting the price they want for their house - and how long it will take to get it.
BUYERS’S BIGGEST CONCERNS: 1. Cost of living (45.4%) 2. Lack of suitable properties (42.6%) 3. Mortgage repayments (41.9%)
SELLER’S BIGGEST CONCERNS: 1. Not getting the price they want (74.6%), 2. How long it will take to sell (43.7%), 3. Market conditions (37.5%)
Sellers are willing to wait for their expected price
Despite how long it will take to sell being a top concern, 60.2% of sellers are willing to either wait on or off the market, to get the price they want.
What this means: Negotiations may be a bit trickier at the time, as both buyers and sellers have less appetite to compromise. Backing this up, size is the thing that buyers are most willing to compromise on. Trade Me Property Customer Director Gavin Lloyd says his advice is “when negotiating be sure to do your homework, talk to agents, have a look at online estimate tools and the likes of homes.co.nz to see what similar properties in the area have recently sold for.”
BUYERS ARE WILLING TO COMPROMISE ON: 1. Size of section or land (44.5%), 2. Size of property (40.7%), 3. Size of garden (40.6%)
Buyer vs seller value perceptions
Buyers like knowing what they’re getting into, possibly due to tighter finances - compromise on property condition is the next highest, but trailed quite a bit further behind at 33.7%.
On the other hand, sellers believe size of the property is the second biggest factor after location that is going to make their house easier to sell.
What this means: A difference in perception may be one of the reasons leading to listings staying on site longer. Trade Me Property Customer Director Gavin Lloyd says he'd recommend buyers “get really clear on what you will and will not compromise on and speak candidly to a trusted real estate agent who can help you with your search."
HOMEOWNERS INTEL: If they don't get the price they wanted, 24.7% would take their property off the market, 35.5% would wait to get an offer that met expectations, 32.8% said they would accept a slightly lower offer
The springtime opportunity
Information is key to making sure you feel confident as you look to buy or sell; but if you're starting on your journey, there's also some great market news - the Spring months generally see an increase in buyer engagement, and at Trade Me Property, we're seeing a 38% increase in listings year-on-year for September Here's hoping your perfect new home (or perfect buyer) is amongst them!
This survey was conducted by Trade Me Property during September 2024 and collates answers from 1,570 Trade Me members.
Other articles you might like
