While property prices climbed to unprecedented highs throughout 2021, peaking in November that year, the predictions of a correction were rife – something would have to give and increases would have to cease eventually.
Not only have those property price increases slowed, but they've actually fallen in most regions nationwide. House prices in Wellington, in particular, have taken a significant hit, presenting some uncertainty amongst buyers, sellers and investors alike.
The average house price nationally dropped by 12.6% in the past year.
In Wellington, house prices dropped by 20%, making it the country's most affordable main centre to buy a house in, according to independent property analysts CoreLogic.
The median house price for Wellington was as high as $1,000,000 in Oct'21. It is now sitting at $790,000 (Feb'23).
Of the eight districts and 123 suburbs that make up the Wellington property market, the most expensive suburb is Seatoun, which has a median house price of $1,776,500. The least expensive suburb is Wellington Central, with a median house price of $492,850, due in large part to the number of apartments in this area.
As we've seen above, Wellington is now one of the more affordable main centres in New Zealand. Prices have come down over the past year, however they are still slightly higher than they were pre-pandemic.
The average house price for the Wellington region is currently sitting at $857,000. How does this compare to the rest of the country?
As you can imagine, house prices vary greatly across the country. The national average price at the end of 2022 was $987,887.
Wellington is sitting below that mark, and below some of the more expensive regions like Auckland, Queenstown, Thames-Coromandel.
When looking at Wellington property forecasts, there are a number of factors that influence the housing market trends and houses for sale in Wellington.
The most significant factor affecting the property market in Wellington, and everywhere else, is the rise in interest rates. The ability to secure financing and service a mortgage are the top considerations for buyers.
This also means that some people are selling up to reduce debt, thereby releasing properties available for purchase.
Another factor affecting the property market is the stock of houses available, which can be impacted by the number of people moving to or from an area.
Immigration is starting to increase again, and Wellington remains one of the country's more popular areas to settle. New developments and urban spread, however, have meant there is no real shortage of houses to buy at this stage.
This is an area we continue to watch, particularly in an election year.
If there is a change of government, we may see changes in legislation that affect investors, immigration and interest rates.
The team at Lowe & Co are continuously watching the market and staying on top of any legislative changes that affect the market. Let us know if there is any particular area you'd like more information about.
With the downturn in prices, there are significant opportunities to enter the investment property market or to add to your property investment portfolio.
Wellington is a robust region for rental property investments. It continues to be a popular area where people want to live and work.
With the settling down of property prices, albeit at a lower level than the peak at the end of 2021, some of the pressure has eased and there's a bit more choice in the marketplace.
While some buyers are being cautious about their borrowing and risk tolerance, we're still seeing solid numbers attending our open homes.
Some of these buyers are researching the market to determine what they can afford, while many of these buyers are seriously looking to purchase and are actively searching for the right property. This is where property presentation, correct strategy and strong negotiation skills are vital.
Higher interest rates mean there may be a bit more uncertainty about what future mortgage payments will be.
At Lowe & Co, however, we have an experienced team of mortgage advisors who can help you navigate these concerns. Andco Mortgages offer sound financial advice to help buyers and sellers make the most of the current markets.
List with Lowe & Co
Lowe & Co has the highest average sale price of any major agency in Wellington and our salespeople sell more properties per salesperson than any other real estate company in Wellington. We pride ourselves on being a trustworthy agency that will go above and beyond to get the best sale for your property.
Whether you're interested in selling your property or are just looking for some expert advice, talk to the Lowe & Co team today.