Market insights. Is now a good time to buy?

After a period of relative stillness, the winds of change are clearly blowing, bringing with them a renewed sense of activity in the housing market.

The latest figures from CoreLogic reveal a positive trend, with property values nationally rising by a solid +0.5% in March. This follows a +0.4% lift in February and a steady hold in January. These consistent gains confirm what we've been anticipating: the market has officially entered its next phase of growth.

This resurgence is largely attributed to the welcome decrease in interest rates and the resulting improvement in affordability following the adjustments we've seen over the past period. In fact, March's increase, as measured by the CoreLogic hedonic Home Value Index (HVI), marks the strongest monthly growth since January of last year.

Currently, the average property value sits at $812,195, the highest it's been since June 2024 ($818,649). While this is encouraging, it's important to remember that values are still 16.3% lower than the peak we saw in January 2022. This context provides a balanced perspective on the current upward trajectory.

Looking at our main centres, we're seeing varied activity:

• Dunedin (-0.1%) and Tauranga (0.0%) are showing a more cautious pace.

• Wellington (+0.3%) is picking up momentum.

• Auckland (+0.6%), Christchurch (+0.8%), and Hamilton (+0.9%), are all demonstrating robust growth in March.

According to CoreLogic NZ Chief Property Economist Kelvin Davidson, these figures are a clear indication of a market shift. He notes that the impact of lower mortgage rates, which began their descent around July or August last year, is now being felt. While factors like a high number of listings and the patience required for those on higher fixed interest rates initially tempered the market's response, these lags have now largely played out. With growing signs of an economic upturn, confidence is returning to the property landscape.

However, Davidson also wisely cautions against expecting a rapid boom. New measures like caps on debt-to-income ratios for mortgage lending are in place to provide a degree of stability.

What does this mean for you?

This cautious optimism is likely welcome news if you’re planning on purchasing.  While the market is showing renewed vigour, a thoughtful and well-prepared approach remains your strongest asset. Do get in touch as we’d love to assist.