FEBRUARY 2023 | MARKET UPDATE
February usually sees kids heading back to School and the real estate market settling into its trading rhythm for the year.
This year the prevailing economic headwinds already facing the property market were further hampered by the Auckland floods and then a week later Cyclone Gabrielle along with Auckland Anniversary and Waitangi weekend. It is fair to say it was a disrupted & bumpy start to the month.
So as the market now settles into its rhythm for the year, where’s it heading?
There is no shortage of headlines to tell you that prices have declined – across Auckland that decline is 15% year on year. It should be noted that whilst there are definite year on year price declines the pace of decline has slowed decidedly and in fact data for our 3 core markets showing month on month price increases in February. Given the disruptions associated with February’s trading and the low volumes it is too early to make conclusive assumptions, but is fair to question if this could be an early indication that prices have bottomed out?
Another distinct change is the time it is taking to sell a property now sitting around 60 days –– timeframes we haven’t seen since the GFC. Hence for those looking to sell it is vital to make your property stand out. With more choice available for buyers’, presentation & promotion become more important along with realistic price expectations.
There does remain strong demand for good properties. We have daily stories of properties with multiple offers, several this week with over 5 offers presented. Along with some fantastic success stories in the auction room
Immigration data out last week also interesting, reporting a rapid turn around in net annual migration from a loss of over 13,000 people just 6 months ago, to now a net gain of 33,000 for the year to January. Accelerating population growth of course increasing the demand for accommodation and likely amplified in Auckland with migrants tending to favour the big cities. The impact of this is still being challenged by rising interest rates and cost of living but will create an interesting supply & demand interaction – particularly with a sharp slowing of new dwelling construction this year.
So what does all this mean?
For cashed-up buyers, the market doesn’t get much better than this!
For sellers, it is vital to have your property well presented, well marketed and you’ll need to be prepared to align with the markets expectation of price.
Now more than ever it is critical to be working with trusted real estate advisors. Talk to a Harcourts Cooper & Co professional to guide you through your buying & selling decisions.
