News

During the pandemic, both New Zealand and Australia saw very fast increases in house prices. And last year, both countries saw prices fall as interest rates started to rise. Australian house prices however are now on the rise, with New Zealand continuing to see declines. Does this mean that New Zealand house price increases are just around the corner? Or is there something fundamentally different to New Zealand property markets that will hold back a turn in market conditions.1. The Reserve Bank of New Zealand has been far more aggressive on monetary policyCentral banks around the world have taken varying approaches to controlling inflation. A key difference between the Reserve Bank of New Zealand (RBNZ) and the Reserve Bank of Australia (RBA) is the level of aggression in trying to tame inflation. RBNZ has moved a lot faster at raising rates than the RBA. As a result, price falls have been greater in New Zealand than what has been seen in Australia.Like Australia, New Zealand is likely close to its interest rate peak. This will be positive for house prices.2. Population growth is less strong in New ZealandIn both New Zealand and Australia we saw population declines during the pandemic, driven by very strong restrictions to entry. Since then, Australia’s population growth has gone back to pre-pandemic levels. This has been a key driver of price and rental growth - there are now too few homes for buyers and renters. In comparison, New Zealand’s population growth has been more subdued in comparison.Migration to New Zealand however is starting to pick up again and is expected to accelerate more this year. While this will put pressure on housing demand, it will also assist some businesses that are struggling to find workers.3. New Zealand economy is contractingMore aggressive monetary policy has had a much greater impact on slowing the economy in New Zealand compared to Australia. There is now a real risk that New Zealand will go into recession. If this is the case, ideally the Reserve Bank of New Zealand will be able to move quickly to reduce interest rates and avoid large rises in unemployment. It however may not be possible if inflation remains high. There is a lot of uncertainty around this but it is the main factor that has the potential to keep house price subdued longer.4. Construction costs are high in both countriesTrying to build a home right now in New Zealand and Australia is really difficult. Construction costs have hit record highs, driven by both supply chain problems, building material cost increases and labour shortages. While supply chains are improving and building material costs are coming down, labour is still a challenge, particularly in New Zealand.These construction challenges are leading to a shortage of homes being built. This has become very clear in Australia where rents are sky rocketing and price growth is on the move. It is yet to show up in New Zealand because migration has been comparatively a lot lower. With population growth set to pick up however, New Zealand is set to have a home shortage in the next 12 months.5. New listings in both countries are fallingIn both New Zealand and Australia, there is a shortage of new property listings. While interest rate increases have led to lower buyer activity, it has also meant that vendors are less likely to want to go to market. In Australia, this has been a key to price growth starting up again. There is simply a shortage of properties to buy, particularly given the rate of population growth. With New Zealand population increasing again, it is likely to be a similar challenge in New Zealand, pushing up prices as a result.6. Rents in New Zealand remain steady, for nowAustralian rents are now increasing at their fastest rate ever recorded. This reflects a shortage of housing compared to the level of population growth. This imbalance is now showing up in house price increases. New Zealand rents have remained comparatively stable, primarily because population growth has only recently returned to positive.This year, New Zealand is expected to see much higher levels of population growth. This will lead to more demand for housing, higher rents and higher prices.Based on what has happened in Australia, and what is set to happen in New Zealand, house price growth in New Zealand is imminent. In particular population growth is back, driving up demand for housing. Soon, it is likely this will outweigh the aggressive monetary policy that has been implemented in New Zealand. A key risk factor however is recession. Hopefully policy implemented by both the New Zealand Government and the RBNZ will avoid this occurring.&nbsp;- Nerida Conisbee is chief economist for Ray White

small_njcdenf.JPG

thumbnail_njcdenf.JPG

njcdenf.JPG

Australian economist on what Kiwis can learn from the rebound in the housing market across the Tasman.

Why house price growth in New Zealand is imminent

Guide

Home staging has become an influential aspect of the selling process. While it may seem like a minor detail, the way a home is presented can make a significant impact on its perceived value and the likelihood of a successful sale. In this article, we will explore the importance of home staging and how it can benefit sellers and buyers.<h3>Home staging can be a cost-effective way to improve the value of your home.</h3>Home staging refers to the process of preparing a home for sale by arranging and decorating it in a way that appeals to potential buyers. This includes decluttering, rearranging furniture, making minor repairs, and adding decorations to create a warm and inviting atmosphere. The goal of home staging is to help buyers envision themselves living in the space, and to showcase the home's features and potential.One of the most significant benefits of home staging is that it can help to sell a home more quickly. Staged homes are often more appealing to buyers, and can help to generate more offers, leading to a faster sale. Research has shown that staged homes tend to sell more quickly and for more money than non-staged homes.Another benefit of home staging is that it can help to increase the perceived value of a property. A well-staged home creates a favourable first impression, making it more appealing to potential buyers. This, in turn, can lead to higher offers and a higher selling price.For sellers, home staging can be a cost-effective way to improve the value of their home. By investing in some minor improvements and upgrades, sellers can increase the value of their property and attract more buyers. Home staging can also help to reduce the stress of the selling process by allowing sellers to present their home in the best possible light.Real estate agents also benefit from home staging, as it can make their job easier. A well-staged home is more attractive to buyers, leading to increased interest and more showings. By presenting a home in its best light, real estate agents can help to generate more offers, making the selling process faster and more successful.In conclusion, home staging is an important aspect of the selling process, providing numerous benefits to sellers, buyers, and real estate agents. By presenting a home in its best light, home staging can help to sell a home more quickly and for more money, making it a valuable investment for sellers and a key tool for real estate professionals.

medium_interior-home-design-living-room-with-open-kitchen-loft-house.jpg

small_interior-home-design-living-room-with-open-kitchen-loft-house.jpg

thumbnail_interior-home-design-living-room-with-open-kitchen-loft-house.jpg

interior-home-design-living-room-with-open-kitchen-loft-house.jpg

We explore the importance of home staging and how it can benefit sellers and buyers

The Importance of Home Staging in the Selling Process

As a boutique real estate agency, we understand the importance of staying up-to-date on current property market trends and conditions. One of the most significant factors that affects the property market in New Zealand is mortgage rates. In this article, we will explore how changes in mortgage rates can impact the New Zealand property market, and what this means for buyers, sellers, and real estate professionals.Mortgage rates are the interest rates charged by banks and other financial institutions for lending money to buy a property. In New Zealand, the official cash rate set by the Reserve Bank of New Zealand (RBNZ) is the benchmark for mortgage rates. When the RBNZ raises or lowers the official cash rate, it directly impacts the interest rates charged by banks and other lenders.When mortgage rates are low, it makes borrowing money to purchase a property more affordable, leading to increased demand for property and a more competitive market. On the other hand, when mortgage rates are high, it makes borrowing money more expensive, potentially reducing the demand for property.In recent years, New Zealand has seen a low-interest rate environment, which has helped to stimulate the property market, particularly for first-time buyers who are able to enter the market more easily. However, the low mortgage rates have also contributed to higher property prices.For sellers, low mortgage rates provide an excellent opportunity to sell their property, as there is a higher demand for property in the market, which can lead to multiple offers and competitive bidding.As real estate professionals, it is essential to stay informed on changes in mortgage rates and their impact on the property market. This information helps us to provide our clients with up-to-date market insights and advice on buying, selling, and investing in property.In conclusion, mortgage rates play a significant role in determining the state of the property market in New Zealand. As real estate professionals, it is crucial to stay informed on changes in mortgage rates and their impact on the market to provide the best advice and guidance to our clients.

medium_modern-luxury-house-with-swimming-pool.jpg

small_modern-luxury-house-with-swimming-pool.jpg

thumbnail_modern-luxury-house-with-swimming-pool.jpg

modern-luxury-house-with-swimming-pool.jpg

Learn about how mortgage rates impact the New Zealand property market.

The Influence of Mortgage Rates on the NZ Property Market

When buying or selling a property, choosing the right real estate agent can make all the difference. A good real estate agent can provide you with expert guidance, support, and expertise, making the process of buying or selling a property much smoother and less stressful. But with so many real estate agents to choose from, how do you know which one is right for you? Here are some tips to help you choose the right real estate agent for you.<h3>Look for Experience</h3>Experience is key when it comes to choosing a real estate agent. Look for an agent who has a proven track record of success, and who has experience in the specific type of property you are looking to buy or sell. This will give you peace of mind knowing that you are working with someone who has the knowledge and expertise to help you achieve your goals.<h3>Check Their Reputation</h3>Reputation is important when choosing a real estate agent. Look for an agent who has a good reputation in the industry, and who has positive reviews from past clients. You can also ask for recommendations from friends and family, or check online for reviews.<h3>Ask About Their Communication Skills</h3>Good communication is essential when it comes to buying or selling a property. Look for an agent who is responsive and easy to communicate with, and who will keep you informed throughout the process.<h3>Find Out About Their Marketing Strategy</h3>A good real estate agent will have a strong marketing strategy in place to ensure that your property is seen by as many potential buyers as possible. Find out about their marketing approach and ask to see examples of their past campaigns.<h3>Look for a Good Fit</h3>It's important to find a real estate agent who you are comfortable working with, and who you can trust. Look for an agent who listens to your needs, and who takes the time to understand your goals and expectations.<h3>Consider Their Fees</h3>Finally, consider the fees charged by the real estate agent. Make sure you understand their commission structure, and that you are comfortable with the fees they charge.In conclusion, choosing the right real estate agent can make a big difference when buying or selling a property. By looking for an experienced and reputable agent with strong communication skills, a good marketing strategy, and a good fit for you, you can ensure that you have a smooth and stress-free experience.

medium_trendy-house-interior-with-modern-furniture-glass-windows.jpg

small_trendy-house-interior-with-modern-furniture-glass-windows.jpg

thumbnail_trendy-house-interior-with-modern-furniture-glass-windows.jpg

trendy-house-interior-with-modern-furniture-glass-windows.jpg

Choosing the right real estate agent can make all the difference.

How to Choose the Right Real Estate Agent for You

Buying a property can seem like a stressful process, especially for first-time homebuyers. With so many factors to consider, from budgeting and property inspections to negotiating the sale and settlement, it's easy to feel overwhelmed. But with the help of a good real estate agency, the property buying process can be made simple and manageable.A good real estate agency can provide expert guidance and support throughout the entire property buying process, making it easier for you to achieve your goal of homeownership. Here's how:<h3>Determining Your Budget</h3>The first step in the property buying process is to determine your budget. A good real estate agency will help you determine what you can afford, and will provide you with a pre-approval for a mortgage if needed. This will give you a clear understanding of what you can spend, making the property search process much easier.<h3>Finding the Right Property</h3>Once you know your budget, a good real estate agency will help you find the right property for you. They will take into consideration your specific needs and requirements, such as location, size, and features, and will search for properties that match. This will save you time and effort in searching for properties on your own.<h3>Negotiating the Sale</h3>When you find a property you like, a good real estate agency will help you make an offer to the seller and negotiate the price and terms of the sale. They will have the experience and knowledge to ensure that you get the best deal possible.<h3>Property Inspections</h3>Before purchasing the property, it is important to have a building inspection and obtain a Land Information Memorandum (LIM) report in New Zealand, or a pre-purchase building and pest inspection in Australia. A good real estate agency will arrange for these inspections and provide you with a detailed report, giving you peace of mind about the condition of the property.<h3>Closing the Sale&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>Once the offer is accepted, a good real estate agency will guide you through the process of closing the sale. They will help you arrange for insurance and transfer the property into your name, and will ensure that all the necessary paperwork is completed accurately and on time.<h3>Moving In</h3>After the sale is closed, a good real estate agency will assist you with the process of moving into your new home. They will provide you with information about the property, and answer any questions you may have.In conclusion, a good real estate agency can make the property buying process simple and manageable by providing expert guidance and support throughout the entire process. From determining your budget to closing the sale and moving in, a good real estate agency will ensure that you have a smooth and stress-free experience when buying your first home.

medium_beautiful-view-blue-lake-captured-from-inside-villa.jpg

small_beautiful-view-blue-lake-captured-from-inside-villa.jpg

thumbnail_beautiful-view-blue-lake-captured-from-inside-villa.jpg

beautiful-view-blue-lake-captured-from-inside-villa.jpg

Learn how a good real estate agency can make the property buying process simple and manageable. 

The Buying Process: How a Good Real Estate Agency Can Make it Simple

Buying property in New Zealand and Australia can be a complex process, but with the right preparation and guidance, it can be a rewarding experience. Here is a guide to the steps involved in purchasing a property in both countries:<h3> Buying a property in New Zealand</h3> Determine your budget Figure out how much you can afford to spend on a home and get pre-approval for a mortgage if needed. Find a real estate agent A good real estate agent can help you navigate the buying process and find properties that match your needs and budget. Search for properties Look for properties in areas that you are interested in, and attend open homes to get a feel for the properties and the neighbourhood. Make an offer When you find a property you like, make an offer to the seller. Your real estate agent can help you negotiate the price and terms of the sale. Get a building inspection Before purchasing the property, it is important to get a building inspection to make sure the property is in good condition and there are no major issues. Obtain a LIM report A Land Information Memorandum (LIM) report provides information about the property, such as the council’s view on the property's compliance with building regulations, any outstanding rates, and other relevant information. This is usually carried out by your solicitor.&nbsp; Obtain a title search This report will show you who owns the property and any restrictions or encumbrances that may affect the property. This step is also typically carried out by your solicitor.&nbsp; Close the sale Once the offer is accepted, the contract is signed and you arrange for a settlement date. You will also need to arrange for insurance and transfer the property into your name. At this stage, the contract is considered “unconditional”. Move in Congratulations! You are now a homeowner. Enjoy your new home and make sure to take care of any maintenance or repair needs as soon as they arise.<h3> Buying a property in Australia &nbsp;</h3>Determine your budget Figure out how much you can afford to spend on a home and get pre-approval for a mortgage if needed. Find a real estate agent A good real estate agent can help you navigate the buying process and find properties that match your needs and budget. Search for properties Look for properties in areas that you are interested in, and attend open homes to get a feel for the properties and the neighbourhood. Make an offer When you find a property you like, make an offer to the seller. Your real estate agent can help you negotiate the price and terms of the sale. Get a building inspection Before purchasing the property, it is important to get a building inspection to make sure the property is in good condition and there are no major issues. Obtain a pre-purchase building and pest inspection This report will provide information about the property's structural integrity and the presence of pests or termites. Obtain a contract of sale This document outlines the terms and conditions of the sale, including the price, settlement date, and any special conditions. Exchange contracts Once the contract of sale is signed by both parties, the sale becomes legally binding. Settle the sale On the settlement date, you will need to pay the remaining balance of the purchase price and take ownership of the property. Move in Congratulations! You are now a homeowner. Enjoy your new home and make sure to take care of any maintenance or repair needs as soon as they arise. These are the steps involved in buying a property in New Zealand and Australia. It is recommended to seek the advice of a financial advisor or a lawyer to ensure that you fully understand the process and your rights as a homeowner.&nbsp; As always, the team at Executive Real Estate are here to help you, every step of the way. Speak to one of our property specialists today to learn more about buying or selling property.&nbsp; &nbsp;

medium_carport-modern-luxury-house.jpg

small_carport-modern-luxury-house.jpg

thumbnail_carport-modern-luxury-house.jpg

carport-modern-luxury-house.jpg

Learn the steps involved in purchasing a property in New Zealand and Australia with our guide.

The Property Buying Process in NZ & Australia

The New Zealand property market is constantly evolving, with new trends and changes emerging each year. Whether you're an investor, a homeowner, or a real estate professional, it's essential to stay up to date on the latest trends to make informed decisions. In this article, we will explore some of the top trends in the New Zealand property market.<h3>The Rise of Regional Property Markets</h3>Over the past few years, we have seen a growing trend of people moving out of the major cities and into regional areas. This has led to a rise in property prices in these areas as demand increases. Many regions have experienced significant growth, including Hawke's Bay, Otago, and Southland. Investors and buyers are increasingly looking to these areas for more affordable property prices and a better quality of life.<h3>Sustainable and Energy-Efficient Homes</h3>Sustainability is becoming increasingly important in the New Zealand property market, with many buyers looking for energy-efficient homes. Solar panels, insulation, and other energy-saving features are becoming popular selling points for homes. In addition, many new developments are incorporating sustainable features into their designs, such as green roofs and rainwater harvesting systems.<h3>An Increase in Apartment Living</h3>Apartment living is becoming increasingly popular in New Zealand, especially in urban areas. With rising property prices, many buyers are looking for more affordable options, and apartments are a great way to achieve this. Many developers are responding to this trend by building high-quality apartment buildings with modern amenities and convenient locations.<h3>Changes in Lending Requirements</h3>Over the past few years, the lending requirements for property purchases have become stricter. This is due to changes in regulations and the need increase risk-averse lending practices. Lenders are now requiring larger deposits, more documentation, and higher levels of income to qualify for a mortgage. This has made it more difficult for some buyers to enter the property market, but it has also led to a more stable market overall.<h3>The Impact of Technology</h3>Technology is changing the way we buy and sell property in New Zealand. Online platforms and apps have made it easier to search for properties and connect with real estate agents. Virtual tours, 3D modelling, and drone photography have also become more popular, allowing buyers to get a better sense of a property before they even visit it in person.Overall, the New Zealand property market is constantly evolving, with new trends and changes emerging each year. The rise of regional markets, sustainable homes, apartment living, changes in lending requirements, and the impact of technology are just a few of the trends shaping the market. By staying informed about these trends, buyers and sellers can make more informed decisions and stay ahead of the curve.

medium_long-shot-woman-field.jpg

small_long-shot-woman-field.jpg

thumbnail_long-shot-woman-field.jpg

long-shot-woman-field.jpg

Discover the latest trends in the New Zealand property market.

Top Trends in the New Zealand Property Market

The Canterbury median house price has risen once again in this month's REINZ statistics.&nbsp; There was an increase of 13.6% to the median price bringing the average sale up to $678,000 in July 2022 (verses July 2021).&nbsp;&nbsp;<figure class="image"><img src="https://exec-real-estate-uploads.s3.ap-southeast-2.amazonaws.com/Market_Update__MAY_2022_%285%29_75ffd9484d.png" alt=""></figure>&nbsp;Read more-&nbsp;&nbsp;<a href="https://mailchi.mp/78d5e703d06a/june-news-letter-9160249">July Market update- August Newsletter</a>

Resources

Property news and insights.

Property news and insights.

Contact Us

Contact Us

Get in touch directly

Follow us on our social networks