The residential housing market in Tauranga has stayed strong with the median price increasing in October. November appears to have brought a shift in the market with a lift in available housing stock meaning more choice for buyers and less competition.
There are many predictions on what the housing market may do and whether a big price adjustment will occur. Tony Alexander, who was the BNZ Chief Economist for over 20 years released an article on 2 December entitled “17 reasons why the boom is over, 19 reasons why there’s no crash”. Tony believes that next year will look different from 2020 and 2021 and more “normal”. It is likely that the price boom in the housing market is close to being over.
The average level of housing prices is about 25% above the long-term trend so prices due to the global pandemic are already a long distance from where they would have been. Rising interest rates will start to slow the market. Housing consent numbers indicate a building boom that is set to rival the 1970’s boom and will increase the options for homebuyers in the future.
Rising construction costs and risks of construction delays are likely to keep prices steady for existing housing stock. The backlog of buyers is also likely to continue housing demand for a while yet. The full article can be found at www.tonyalexander.co.nz.
Seniors Real Estate Tip: Some lifestyle/retirement villages allow a purchaser to put a hold on an apartment for a week while they are considering their options. If you see something you like this gives you time to consider your options without losing your opportunity.