Wellington Market Update | February 2024

More houses for sale, the prospect of lower interest rates, and the likelihood of improved capital gain make this the optimal time to buy a home in Wellington, Tommy’s Sales Director Tim Clark says.

“The Wellington market is experiencing a unique moment in time right now.

“Prices have settled into their new normal, lots of new stock is coming to the market and increased buyer activity is resulting in multi-offers.

“We also have pundits suggesting that interest rates will start to decrease sooner than expected and predicting house prices to increase as much as eight per cent over the course of 2024.

“For buyers, this means that for the first time in years it will likely get easier to service a new mortgage over time rather than harder.

“This, combined with expected capital gains, means now is a great time to buy.” Tim says more stock means more competition for vendors.

“So they do need to do their best to present and market their property. “If they do, they are likely to see a successful marketing campaign result in multiple offers — which will maximise their price in the current market.”

Tommy’s expects the current market conditions to continue for at least the next three months and perhaps into the following quarter.

“Things are looking up in the property market overall,” Tim says, with more listings popping up and Kiwis getting more interested in buying homes across the country.

“In Wellington, good houses always seem to find buyers, no matter what’s happening in the market.

“And there’s always someone wanting to either move up to a bigger place or downsize. “Lately we’ve noticed the comeback of first-home buyers — they’re really getting back into the swing of things this summer.”

Tim says the secret of success in this kind of market, where people are both buying and selling, is knowing the ropes.

“Unlike when things are super-hot, the gap between what you’re buying and what you’re selling isn’t as huge. “And even though interest rates might be a tad higher right now, they’re likely to drop, which could work out better for you in the long run.

“Right now is a sweet spot for buying.”

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