Recent data(1) is encouraging for buyers. Prices are easing and there’s more stock on the market than we’ve seen in years.
But whether that makes you want to move now or wait a while longer, remember this: market conditions are only half of the story. The other half is you – your finances, your goals, your life.
Let’s start with what we do know.
What’s happening in the property market
According to the latest figures reported by Realestate.co.nz(1), there were 33,252 residential properties up for sale at the end of July. That’s the highest stock level for this time of year in 12 years.
More listings tend to mean softer prices, and that’s exactly what we’re seeing here. The national average asking price on Realestate.co.nz has now fallen for five months straight – down from $898k in February to $828k in July (a drop of approximately 8%). By Realestate.co.nz’s own account, more and more vendors are willing to negotiate and meet the market.
Worth noting: rising interest rates are likely playing a part too. Higher borrowing costs mean less competition among buyers, which gives vendors less room to hold firm on price.
Here’s both sides of what that means for you.
The case for buying now
Conditions like these favour buyers who are ready to move. More stock means more choice. And vendors open to negotiating means more room to make an offer on your terms.
Plus, there’s a potential cost to not acting when you’re in a position to do so:
- You’d likely keep paying rent in the meantime.
- You might miss out on equity you’d otherwise be building, however gradually.
- Delaying a purchase may mean spending longer renting rather than building equity in a property of your own.
- If buyer confidence returns, so could competition – and today’s negotiating room may disappear with it.
- Lending rules and deposit requirements can also shift over time, sometimes making it more difficult to qualify for a mortgage.
None of this is urgent – just something worth having in the back of your mind.
The case for waiting
Being in a buyer's market doesn't automatically make this your moment.
Two key questions still matter more than anything happening out there:
- Can I comfortably afford to buy right now?
- Would this move fit my needs and goals?
If the answer to either is no, it may be worth giving yourself more time – to strengthen your deposit, settle into a steadier income or get clearer on what you’re after.
Buying a home is a big commitment, financially and emotionally. Rushing into one before you’re ready, just because prices have dropped, can end up costing more than patience would have.
Focus on what you can measure and control
Nobody can call the exact bottom of a property or interest rate cycle. That's just not something you can know in advance.
So instead of chasing perfect conditions, focus on what's actually within your control:
- How much deposit you have, and how much you can realistically borrow.
- Whether you can comfortably repay at today’s rates, and at 2-4% higher.
- Whether your income and employment feel stable enough to commit to for the next few years.
- Whether a purchase is aligned with your short- and long-term plans.
This decision isn’t just about money
Your finances are crucial, of course. But buying a home often involves trade-offs that go well beyond “cold” numbers.
It may mean living further out than you’d like, or having to take on a boarder to help with costs.
Sometimes it comes down to timing in your life, rather than timing in the market. Some people are ready to put down roots because their kids are starting school soon, or they're just tired of renting. Others want the flexibility to move cities in the near future, which might make now the wrong moment, no matter what prices are doing.
So, is now the time?
Only you can decide whether now is the right time. The important thing is making that decision with a clear understanding of your finances, your goals and your borrowing options.
A Mortgage Link adviser can help you navigate the possibilities and choose a path that works for you.
Sources:
- Interest.co.nz – Realestate.co.nz says vendors need to price their properties to meet the current market rather than hold out for 2021 prices
Disclaimer: The information provided in this article is intended for general informational purposes only and does not constitute financial advice. Every individual’s financial situation is unique, and financial decisions should be made based on your specific circumstances and goals. We recommend consulting with a qualified financial adviser before making any investment, insurance, or mortgage-related decisions.
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