Understanding what the
New Zealand property market conditions are at the time you wish to purchase can
save or cost you money depending on when you purchase. This is particularly important
for investors.
There are 3 main stages in the property market, a
buyer's market, a
seller's market and a
balanced market.
When there are more properties on the market than there are buyers, the time a property takes
to sell increases and the prices level or start to drop. This is known as a buyer's market. If
you look at the property pages during a buyer's market you tend to see price reductions as
a selling point for properties.
When supply outstrips demand, the selling time of properties is quick and house prices
increase dramatically, the market is in a boom or a seller's market. This has been the case in
New Zealand in recent years. Investors from overseas took advantage of the low dollar price
and invested in New Zealand forcing prices up. This is usually the worst time to buy, however
money can be made if you buy early on in the boom.
The balanced market is when the market is generally stable. This is a very rare occurrence and
if real estate professional tell you that we are experiencing a balanced market, then chances are
we are in a buyer's market.
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