As the Hutt Valley property market approaches the typically slower winter months, now is an ideal time to assess your situation and set your property goals for 2024 and the future.
Currently, the market is expected to remain relatively stable, with both sellers and buyers recognising that conditions are unlikely to change significantly in the near future. However, in three years, we might look back on 2024 as a period of relative calm before an anticipated surge in activity, making it an opportune time to buy. This is an excellent opportunity for buyers, as we anticipate a future decrease in interest rates, which is expected to boost demand and subsequently drive house prices up over the next five years.
Here are five reasons why now is the ideal time to buy:
1. The market is stable – Property prices may have bottomed out, giving buyers confidence that they won't lose money. Sellers, with a robust marketing campaign and a realistic perspective, can be assured of getting the best value for their home in the current market, and then confidently purchasing within the same market conditions.
2. Property is a great investment – Over time, property values have consistently increased, and we may have passed the lowest point in the current cycle. There has never been a bad time to buy in the property market, and this holds true today. Although interest rates are high, buyers can be confident that their purchases will not result in a loss in the long term.
3. We are at the start of a new property cycle – Most economists agree that when (and it's a matter of when, not if) interest rates come down and the Reserve Bank successfully tames inflation, we will enter a new cycle of growth. The market has experienced pent-up demand due to uncertainty, meaning that many buyers are actively looking, and for sellers, it’s the perfect time to sell in the short to medium term.
4. New builds are providing more options for buyers – There are around 150 completed homes available in Lower Hutt, some of which are off the plan. With First Home Grants now scrapped, first home buyers who submitted their application for the Grant prior to 1pm on 22nd May 2024 should take advantage of the additional $10,000 available to them on a new build while they have the opportunity.
5. Immigration has been strong – New Zealand has experienced record immigration over the last two years, and it generally takes up to three years for immigration spikes to flow through to the to the property market, as immigrants rent before they buy. As we head into the end of 2024 and beginning of 2025, we will see an increase in this demographic looking to buy property in New Zealand.
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