housing market

What does the Housing Market look like for the Holiday Season?

The holiday season is nearly upon us. As we enter into December a time of year where spending is at high, what does the New Zealand housing market look like? Will we see a lull in the house prices, or will house sales continue to soar? Shopless has some information on what to expect to see in the 2021/22 holiday period. If you are looking to buy or sell your home over this period. 

Predicted Increase in Houses on the Market

The number of houses on the market are expected to increase over the holiday period. This surge of new homes on the market could bring a lull in the property market. However as the turnover of homes has been rapid over the past year, it is unlikely to have an effect on the housing prices. An increase in homes on the market will most likely slow down the rate at which home sales occur. But not bring down the prices. 

The Barefoot and Thompson report released for November stated that there was a 24% increase in the amount of houses listed for sale. This is unusual for this time of year, as more commonly Christmas shutdown periods cause the housing market to see a slight pause in properties listed. However, this may not be the case for the 2021/22 holiday period. As information suggests that buyers will have more to choose from this holiday season. 

Increased Sales of High End Homes Pushes Prices Up

Sadly the increase in housing prices has not seen its peak. With latest statistics in November showing a continual increase in prices in the NZ housing market. Barfoot and Thompson stated that they had seen a further increase in house prices as Auckland returned to normal trading conditions. The average New Zealand house price now sits at $1,250,886. 

The increase in sales of high end properties have also contributed to a rise in house prices. Auckland saw the biggest surge in demand for more expensive properties. With the city’s average house price increasing by 5.2% in one month. This has been attributed to a sudden increased demand for homes in excess of $2million. However this trend is predicted to continue over the summer months. The housing market continuing to see prices on the rise. 

Housing Consents on the Rise

Although during September and October, New Zealand saw a decline in the housing consents authorised. Going into the holiday season housing consents are predicted to be on the rise. With many favouring starting a new build, over the purchase of an existing home. There are a few reasons this is the case. As Auckland comes out of lockdown into the traffic light system, the ability to continue or start work on new builds will become more accessible.  One report stated that almost half of the housing new homes built in the NZ housing market in 2021 were in Auckland. This is despite the city being in lockdown for an extended period of the year. 

Additionally Christchurch has seen a significant rise in new homes built as well as major renovations. With housing consents surging to higher numbers seen post-earthquake. Subsequently across the country there should be an increase in new homes built this holiday season. 

Based on what we have seen in November, Shopless has offered a general analysis of what to expect in December/January. If you are looking to buy or sell your home over this period, make sure to check out the Shopless property section, here. Understanding the property market can be hard work, and we hope to ensure that during the holiday period you have a great experience with your home.