"The real estate statistics for February are better than most would've expected. That can only help autumn, as will the easing of controversial lending rules which pulled the rug on so many buyers over summer," says Tim Kearins, Owner of Century 21 New Zealand.
His comments follow REINZ releasing its Monthly Property Report for February – a month which saw median house prices across New Zealand up 13.5 % compared to the same time last year. REINZ noted that while property prices remain firm, supply now outweighs demand.
At $885,000, the national median house price is up slightly on the previous month by 0.6%.
The Century 21 boss says the summer was badly affected by the Credit Contract & Consumer Finance Act (CCCFA) coming into play on 1 December, leading to biggest credit crunch since the Global Financial Crisis in the late 2000s.
"Summer started with the CCCFA changes taking effect. It required banks to conduct ultra-conservative assessments on all new borrowers, with new mortgages all but drying up for three months. Last week's announcement that the Government is making some significant tweaks to the CCCFA gives the coming months a timely boost," says Mr Kearins.
Across New Zealand, the number of residential property sales decreased 32.8% in February, from 8,324 in February 2021 to 5,597. At the same time, the total number of properties available for sale nationally increased 47%, from 15,829 in February 2021 to 23,270.
"Summer was light on sales industry-wide but with listings lifting, and now with improvements to the lending rules, we're seeing a lot of real estate activity move out to March and April. Autumn is off to a better start, with those vendors keen to strike a deal now adjusting their sights somewhat," he says.
Mr Kearins says the resilience of New Zealand's residential property market is quite remarkable when you consider a number of external factors negatively impacting consumers and their confidence.
"Against the odds, February showed that overall property prices continued to climb albeit at a more moderate pace. Let's not forget that despite plenty of doom and gloom, February saw six regions and 23 territorial authorities achieve record median prices. It is a much better end to summer than most had anticipated," says Tim Kearins.