Auckland’s property market, once a seller’s dream, is now showing signs of a significant shift. With a recent surge in listings, the market is edging closer to a more balanced state.
A Look at the Numbers
As of November 2024, Trade Me has a total of 14,634 property listings in Auckland. While this may seem substantial, it’s crucial to consider these figures in relation to the city’s population.
- Auckland’s Listing Per Capita:
- At 14,634 listings for a population of approximately 1.72 million, Auckland currently has roughly 8.5 listings per 1,000 people.
- Comparing to Australian Cities right now where demand is strong:
- Sydney: Less than 3 listings per 1,000 people
- Melbourne: Under 6 listings per 1,000 people
This higher-than-average listing rate in Auckland suggests an oversupply, a stark contrast to the market conditions in 2021 when listings plummeted to around 6,000. At that time, Auckland had a mere 3.5 listings per 1,000 people, indicating a severe seller’s market.
The Impact of Oversupply of new builds
An oversupply of new builds can significantly impact pricing. As more homes become available, competition among sellers intensifies, leading to potential price reductions. This shift in market dynamics can be advantageous for buyers, particularly first-home buyers.
A Perfect Storm for First-Home Buyers
The current market conditions, coupled with recent changes in interest rates, have created an ideal environment for first-home buyers:
- Decreased House Prices: The oversupply of properties has led to a cooling of the market, resulting in a decrease in house prices.
- Lower Interest Rates: Banks have reduced their interest rates as well as the test rates, making it more affordable to borrow money for a mortgage.
- Increased Borrowing Power: The lower test rates mean that buyers can borrow more money, potentially affording larger homes.
A Balanced Market on the Horizon
A more balanced market, characterised by a listing rate of around 10,000, would offer a healthier environment for both buyers and sellers. It would provide buyers with a wider range of choices and potentially better deals, while also ensuring that sellers can still achieve fair market value for their properties.
A Window of Opportunity: Seize the Moment
While the current oversupply in Auckland’s property market presents a unique opportunity for buyers, it’s important to recognise that market dynamics are cyclical. As economic conditions improve over the next couple of years, the pendulum may swing back, and the market could tighten once again.
A Glimpse into the Future
As the economy rebounds, demand for housing is likely to increase. This renewed demand could lead to a reduction in property listings and a potential rise in prices. By purchasing a property now, buyers can position themselves to benefit from future market appreciation.
A Legacy of Smart Investment
By taking advantage of the current buyer’s market, you can secure a property that could become a valuable asset for future generations. Your foresight and timely investment could provide a solid foundation for your family’s financial future.
Don’t Miss Your Chance
With interest rates at historic lows and a surplus of properties, now is the ideal time to make your move. By acting decisively, you can secure a property at a favourable price and potentially reap the rewards of long-term appreciation.
Remember, the current market conditions may not last forever. Seize this opportunity to turn your dream of homeownership into a reality.
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