Stability amidst change: Lower Hutt's Property Market Insights
Lower Hutt’s property market experienced a slight decline last month, reflecting both local and national trends. The median sale price fell to $700,000, down from $710,000 in July, and sales volumes also dropped with only 83 properties sold compared to 111 the previous month. This dip highlights a slowdown in buyer activity, possibly influenced by broader economic factors such as affordability and labour market uncertainty.
Although the market has cooled, there is still a sense of stability, with inventory levels providing more choice for buyers. With stock levels at multi-year highs, buyers have greater negotiating power, but this advantage primarily benefits those able to secure finance, as access to credit remains a key limiting factor.
Sentiment remains cautious despite the positive impact of falling mortgage rates, which has improved household confidence. The reduction in rates offers financial relief to borrowers and may support housing demand in the short term. However, challenges like stretched housing affordability and a softer labour market are expected to continue placing downward pressure on property values in the coming months.
First home buyers have been the most active in the Lower Hutt market, seizing the opportunity to enter at more reasonable price points. Sellers, for the most part, have been realistic in their price expectations, creating a more balanced dynamic between themselves and buyers. Properties are staying on the market longer with the median days to sell having increased from 37 days in August 2023 to 50 days in August 2024, suggesting that buyers are taking their time and exercising caution.
Looking ahead, while lower mortgage rates may provide some support, the market still faces considerable headwinds. Affordability remains a pressing issue, and job market insecurities are likely to keep both buyers and sellers conservative in their decision-making. The outlook for the Lower Hutt property market is one of cautious optimism, with the expectation that the market will continue to stabilise, but further growth will depend on external economic factors.