Selling with Team YIP
20 Johnsonville Road,
04 477 6177
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04 477 4450
Selling with Team YIP
Good time to buy? YIP!
06 May 2022
Yes, the media have been reporting a price trend down, but keep in mind that most of data used have a time delay. If we sell a house today, that price may not reach official public data until much closer to settlement or even on settlement. So, a lot of the 'predicted' price trends, have already happened and are not a reliable indicator for future changes.
Buying in the Dip?
The ideal of buying at the lowest point of this phase of the market may seem nice - but all buyers are thinking the same. Whenever the media / market perceives the market to dip we start to see the backlog of buyers flood the market. Which welcomes back the much-loved tenders, deadline sales, auctions etc. Market value may have bottomed out, but this will be balanced back with competitive value. My wife and I just bought a house, yes, it is probably going to lose some value - but we much rather buy in direct negotiation with vendor with no competition.
In times like these you can be assured that all the sellers on the market have a genuine motivation and need to sell. So go ahead and do your due diligence and have the confidence that your efforts won't be wasted. Sellers are also aware of the change in market value/future trends and this creates a healthy balanced
Interest rates have gone up and with the market variables now, this trend is likely to continue. So, buying now and fixing at a lower rate will make a significant difference to your mortgage long-term. For example, if you take an average mortgage and look at the different of 1% interest rate over the entire term, you are looking at around $200k more in total cost. Which pales in significance against waiting for prices to drop a little more. Plus, if you are currently renting, you may as well be paying your own mortgage and not your landlords.
At the end of the day, there are much more important things in life than just money. It is always better to time your lives rather than time the market. If you are interested in having a discussion about your property plans, get in touch - love to hear from you!