More home-owners are holding onto their properties for longer due to fearing a lack of properties available for sale in the Kapiti-Horowhenua region.
Tall Poppy Real Estate Otaki/Horowhenua Franchise Owner Brendon Heenan says,
“it is currently a great time to sell, but a competitive environment for buyers.”
Subsequentially, he believes that home-owners are not selling due to, “fears of having nowhere to go and a lack of choice available on the market.”
He says more sellers are including sale conditions that cover enough time for them to find another property.
Mr Heenan says the market is experiencing lower property listings than ever before.
Past listing numbers have been as high as 250 listings for Otaki at any given time compared to currently around 25 listings in the Otaki region.
“There is more competition for properties that do come onto the market, Tall Poppy has experienced up to four offers battling after the first open home,” he says.
This is making it hard for first-home buyers, Mr Heenan says, “this is a shame because they are people who are most excited about buying a home.”
The quiet sales activity across the property market could be due to longer hold periods by home-owners, according to CoreLogic Weekly Market Pulse
Last week, CoreLogic analysed hold periods, the years between purchase and resale of property across New Zealand.
CoreLogic Senior Property Economist Kelvin Davidson says the time that properties are being held onto before they’re sold has fallen, the current median is just less than seven and a half years.
However, this is significantly higher than the median in 2007 which was just less than four years.
The statistics show that Auckland has shorter hold periods than the rest of New Zealand and first home buyers tend to hold properties for less time than multiple property owners, However, Mr Heenan believes that Kapiti is well insulated from this.
Mr Heenan says the Otaki-Horowhenua region is becoming more popular for buyers, especially Levin.
This is due to more people moving north of Wellington City, the Coast is better for housing affordability and the completion of the roading projects is making commute times shorter.