End to housing market downturn may be in sight - CoreLogic NZ
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- 25 Apr 2023
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The stabilisation of mortgage interest rates is among several indicators signalling a possible end to the country's extended property downturn.
CoreLogic NZ's monthly update on the country's residential housing market pointed to green shoots beginning to emerge among key market metrics, such as listing numbers, sales volumes and an easing in price falls.
While house prices continued to fall last month, amid subdued property activity levels, the market fundamentals were not as weak as they had been, according to CoreLogic NZ chief property economist Kelvin Davidson.
Davidson did not rule out further price falls in the short-term, but said there was little movement among banks and lenders to pass on the most recent 50-basis-point increase in the official cash rate (OCR) to 5.25 percent.
Average property values fell 2.4 percent in the March quarter, taking the annual decline to 10.5 percent, which surpassed the worst point of the Global Financial Crisis.
Sellers meeting the market
Data from realestate.co.nz and the Real Estate Institute indicated sellers were being realistic about asking prices, with the gap between the national average asking price and median selling price remaining fairly constant at 5.7 percent over the past 16 years.
"What this means is, for the most part, real estate agents and vendors are setting a price when they list a home that is realistic to what the property sells for," Realestate.co.nz chief executive Sarah Wood said.
"Asking prices have followed an almost identical trendline to selling prices Read More…
