Buyers’ market expected to emerge next year

In its latest Market Pulse report, CoreLogic says already there are signs the number of listings are firmly climbing, although total supply across the country is fairly tight.

Some key areas, such as Wellington and Dunedin, are loosening quickly, says Kelvin Davidson, CoreLogic’s senior property economist. In other areas with unemployment still low and motivated sellers few and far between, vendors may just sit tight for a while and not budge on price or even just withdraw their listing.

“However, more choice for buyers can only mean reduced price pressures in due course, and a switch to a buyer’s market – albeit they’ll have to work harder to get the finance in the first place.”

He says the tight supply of listings and strong demand fuelled by low mortgage rates and abundant credit availability has been a factor right across the country, pushing up property values sharply. “The lack of choice for buyers has created the fear of missing out (FOMO) effect and it’s put the power in the hands of property sellers.”