Property and real estate are New Zealand’s largest industries, contributing $41.2 billion a year to gross domestic product (GDP) or 15% according to the Property Council. Since the Covid-19 pandemic began, many people have been spending more time at home, thinking about home and forced into using their home as both a workspace and a holiday home. This means that many are taking stock of their real estate, and looking into investing and securing a new, better property. Here at Mortgage Masters, we understand the ins and outs of the property market here in New Zealand and we offer first time home buyers, commercial property buyers and investors the opportunity to secure the best home loan. We supply our clients with all the information they need about their local property market and its future forecast.
Property Market Overview by Mortgage Masters
The average house in New Zealand is now valued at $1,053,315, an average annual increase of 28.4% from 2021. Despite the pandemic and with New Zealand closing it’s borders to overseas visitors and tourists, the property market showed quite an unusual year. Now, at the beginning of 2022, the housing market is beginning to pump the brakes. There is an ease in demand and purchase of property, however, it hasn’t stopped altogether. The slowing of the market may be attributed to borders reopening, inflation of the financial market and growing interest rates. Inflation and rising interest rates as well as intervention from the government and the banks tightening lending rules, has led to expectation amongst commentators and experts that there will be some sort of downturn this year.
Property Market Predictions
New Zealand’s Treasury said in its economic and fiscal update in December, that house prices were forecast to rise 10.4% in 2022, which is much lower than what was seen in 2021. However, previous forecasts from Treasury have been incorrect and unpredictable. In May, it said it expected a rise of 17.3%, but prices jumped 29% instead. This just goes to show that it is almost impossible to correctly predict the coming trends, in the midst of a global pandemic and constant market fluctuations. All five of New Zealand’s major banks are also predicting house price drops, while economist Cameron Bagie believes the downturn will come at the end of 2022 instead.
Contact the Best Mortgage Broker 2022
Obtain more information about the property market within New Zealand for 2022 from the best mortgage broker in 2022: Mortgage Masters. Here in Auckland, we continue to provide the best advice and home loan schemes to commercial property investors and residential investors. Contact our team today and enjoy a free consultation with one of our experts.