More buyers and sellers as we begin the spring season

The reduction of the official cash rate (OCR) appears to have sparked an increase in buyer activity, and potentially seller activity as well.

In the 14 days following the OCR announcement on August 14, there was an 8.5% increase in residential listing enquiries on realestate.co.nz, while 6.2% more people saved a search so they would be notified about listings.

Meanwhile, the number of new listings (i.e. those that had been on the market for less than 30 days) on realestate.co.nz in August was 11.6% higher than the month before and 8.1% higher than the year before.

“The rise in new listings suggests that vendors view this as a favourable time to sell, likely in response to a more positive sentiment in the market and increased buyer activity,” said realestate.co.nz CEO Sarah Wood.

While New Zealand experienced a seller's market in much of 2020 and 2021, followed by a buyer's market in much of 2022 and 2023, the market is reasonably balanced right now.

“Those selling can capitalise on increased buyer interest, while those looking to buy still have plenty of choice. Both buyers and sellers can benefit from the relative stability in prices,” Ms Wood said.

3 tips to sell your home faster and for more

• Hire an experienced real estate agent – the key thing to focus on when selling your home is your net result (i.e. sale price minus costs), rather than just the costs. A worse agent will charge a lower commission and probably deliver a lower sale price; a better agent will charge a higher commission and probably achieve a higher price, which may leave you with more money in your pocket at the end of the process.
• Do maintenance and minor renovations – buyers will pay more for a home that’s ‘move-in-ready’ than one that requires fixing up, which is why spending money on things like modernising the bathrooms and painting the walls can deliver outsize returns.
• Invest in marketing – the more people who know about your listing, the more buyers you'll attract and the more competition you'll generate.

3 tips to buy your home faster and for less

• Research the market – attend open homes and study comparable sales, so you understand how much your preferred kind of home is likely to cost and how much buyer competition you're likely to face.
• Be flexible – ask vendors if they'd be willing to accept lower prices in exchange for a longer settlement or the chance to continue renting the problem after settlement.
• Get a home pre-approval – arrange your finance in advance, because this shows sellers you're serious and will make them more willing to do business with you.

If you’re planning to buy a home before the end of 2024, your first step should be to contact me for a pre-approval. I’ll compare home loan options for you and manage your application.