Property Prices Stabilize as Housing Market Recovers
According to the latest CoreLogic NZ Pain & Gain report, the third quarter of 2023 saw a recovery in housing market conditions, leading to a stabilization in the price of resale properties. The wider property market has found its footing after nearly two years of a nearly seven-percentage-point drop in resale prices.
Strong, Fading Resale Performance Patterns
CoreLogic Chief Property Economist Kelvin Davidson reported that most parts of the country are experiencing strong but slightly fading property resale performance patterns across all property and owner types. The majority of property resellers received a price higher than what they originally paid in the third quarter, as most of them had owned their property for several years.
“The wider property market has now found a floor, and this helps to explain why the ‘pain’ proportion stayed relatively unchanged over the past quarter. In other words, the worst may have already passed for property resellers,” said Davidson.
Slow Rise in Property Values Expected
Davidson expects that the slow rise in property values over the next six to 12 months should see resale performance improve, though it might take some time. For most property owners who have held their property for a typical period of seven to eight years, resale profits are still likely, regardless of what is happening in the wider market over shorter periods.
“It’s also important to note any resale gains for owner-occupiers aren’t necessarily cash windfalls. Instead, that equity just needs to be recycled straight back into the next purchase, unless they’re downsizing or moving to a cheaper location,” added Davidson.
What This Means for Property Owners
The stabilization of property prices indicates a positive shift in the housing market. For property owners who have held onto their properties for a typical length of time, resale profits are still likely, despite fluctuations in the wider market. This is good news for those looking to sell their homes, as the recovery of the housing market suggests a more stable environment for both buyers and sellers.
Looking to the Future
As the housing market continues to recover, it’s essential for property owners and potential buyers to stay informed about the latest trends and market conditions. By keeping up-to-date with market reports and expert opinions, you can make well-informed decisions when it comes to buying or selling a property.
If you’re considering buying or selling a property and want to learn more about the current market conditions, contact us today. Our team of experienced real estate agents can help guide you through the process and ensure you make the best decision for your needs.
Orginal article: Link To Article – provided by Kansas City Realtors