If you’re considering moving home, either to upsize or downsize, or you’re considering buying a second home, the current New Zealand housing market may present some opportunities. With house prices stabilising, changes to LVR (Loan to Value Ratio) for investors, steady unemployment rates, and an absence of foreign buyers in the market, now may be the right time for you to move home. Find out more and get our tips on preparing to sell your existing home to buy a new one.
House prices are relatively stable
A key factor for both buyers and sellers of property in New Zealand is the relative stability of house prices. While the property market has seen several years’ worth of fluctuations – in particular, a steep rise in prices following COVID – recent trends indicate a levelling off of house prices, providing a more predictable and manageable environment for both buyers and sellers.
LVR changes for investors
Homeowners looking to grow a property portfolio by investing in a second home, may find recent changes to LVR (loan to value) for investors make it more feasible to enter the market or expand their portfolio. LVR restrictions limit the amount of finance investors can obtain when buying investment property. However, from 1 June 2023, LVR restrictions have eased slightly, with potentially more financing options opening up.
Unemployment remains stable
An important factor contributing to a positive outlook for the housing market is the stable unemployment rate, which remained at 3.4 per cent in the March 2023 quarter, unchanged from last quarter, according to figures by Stats NZ. Employment figures play a key role in the real estate market, as a homeowner’s ability to buy property is closely linked to their employment status and income level. With a stable unemployment environment, more homeowners may be in a better position to buy a first home or buy a new home.
Foreign buyers have not entered the market
In previous years, the New Zealand property market experienced significant interest from foreign buyers, but Government policies currently restrict or limit overseas investment in residential property. As a result, the market is more focused on local buyers, potentially reducing competition and providing more opportunities for Kiwis to find their dream homes.
Tips for preparing to sell and buy a new home
Here are our tips to help you prepare to sell your existing home, and buy a new home or investment property:
- Evaluate your finances: Working within your budget, conduct a thorough assessment of your financial situation and the potential cost of moving. Factor in things like removal costs, legal fees, mortgage break fees (if applicable), and any other costs that may be incurred when selling and buying.
- Engage a real estate agent: Hiring a real estate agent who understands the local market can be invaluable. A real estate agent can help you navigate the selling process – including pricing your property competitively, marketing it to maximise exposure, and staging it to showcase it at its best.
- Get your home market ready: To maximise its appeal for potential buyers, address any necessary repairs or maintenance tasks, and consider having your home staged to sell. A well-presented home often demands a higher sale price and can attract more buyers.
- Get pre-approved for a new mortgage: Before you start looking for a new home, get mortgage pre-approval. That way you’ll know how much you can spend, and having pre-approved finance can give you a competitive edge when it comes to making an offer.
- Be flexible and patient: Buying and selling a home can be a complex and unpredictable process. Be prepared to be patient and flexible during negotiations and keep your priorities top of mind when making important decisions.
Mortgage advice for buying property in New Zealand
If now is the right time to make your move in the New Zealand housing market, get help preparing for the buying and selling process with mortgage advice from the team at Mortgage Express. Whether you’re a first home buyer, an existing homeowner looking to upsize or downsize, or an investor growing a property portfolio, Mortgage Express branded mortgage advisers can provide mortgage advice to assist you on your home buying journey.
