Low housing stock levels have been the story throughout New Zealand over the last two and half years with most houses selling quickly and many in competitive situations due to the fact that buyers are limited to what is available during their time searching for a home.
Not enough stock has meant that home buyers have been forced to pay premiums to secure and become the new owners of the homes they have been offering or bidding on. Now, for the first time here in Wellington City since the market started to surge we are seeing a very small adjustment to the rate of growth.
Wellington City has gone back by 1.6% over the last three months, which is the first time I have seen a backward movement in prices since the middle of 2015. Unfortunately for current home buyers, although this seems like welcome relief, the Wellington City housing stock levels are at the lowest I have ever seen in 17 years ! As of yesterday there were 365 properties on Trade Me for sale in the Wellington City region (which stretches from Seatoun out to Tawa ). If you take apartments, sections, townhouses and properties being built off plans out of the equation you end up with 183 residential homes for sale. This is impossibly low even for Winter in Wellington. I do have to note here, that this figure does not include the Hutt Valley or Poriua. Those regions are still gaining in value as people move a little further away from the city to find something more affordable.
What all of this means is that home sellers are still getting good prices because demand is still strong, but supply is very, very low. I have been saying to potential sellers that if you have a house your thinking of selling in the next three years then get on the market as soon as possible. Only a fool would try and predict the future……………so I am going to give it a go. My feeling now is that when stock levels in Wellington City start to rise (as we head into spring and summer) the demand will be less and the buyers will thin out a bit for each property as the selection of homes becomes greater. This could see the overall prices drop a bit, but this will be on the back of nearly 3 years of phenomenal growth.
James Copeland No.1 Individual Salesperson 2016 & 2017 Lowe&Co Realty ANDCO REALTY LTD: LICENSED UNDER REAA 2008. M 027 777 1120| T 04 382 9313 E [email protected] | W loweandco.nz