Another year and no doubt a year that will provide opportunities for more people to purchase their first home and benefit from having security of tenure for their family and dependants. It is also an opportunity of course for long term savings and possible capital gains. We say long term capital gains as realistically, the rampant escalation of property prices in the last year must come to an end or at least slow down and we believe the early signs of this happening are now evident.
As the curtain came down on 2021, there was media publicity suggesting a hardening in bank lending policies and this will have an impact on the number of home buyers in the market with the ability to buy. Disincentives for investment buyers are kicking in also and are likely to take a number of investment buyers from the market. At the same time, like most agencies, Tommy’s has had a significant increase in the number of properties for sale creating a larger selection pool for those still with the ability and desire to buy.
However, it is not all bad news! Wellington has always been a resilient market avoiding the highs and lows of other popular markets and this is unlikely to change with the number of buyers moving each year to the greater Wellington area for business, study, and recreational reasons. The long-awaited opening of Transmission Gully must surely become a reality early in the new year and will enhance access to the Kapiti Coast and will be welcomed also by commuters who choose to buy in suburban locations.
It is possible that properties may take a little longer to sell in the new year and home sellers should allow for this and also be receptive to an agents request for a slightly longer agency period. Tommy’s forecast a slow down in the price hiking witnessed last year but don’t anticipate any major reduction in housing prices.