New research reveals fewer buyers, especially in Auckland and Wellington, are waiting for a property crash to reduce prices
The latest Canstar Blue research of 1,104 Kiwis show only 4% of buyers are holding out for a property crash.
Canstar Blue general manager Jose George said last year results showed 11% of buyers were holding out for substantial price drops. In Auckland and Wellington, the drop is even bigger this year, going from 15% to 6% for Auckland and 5% for Wellington this year.
“It’s an interesting scenario because although the property market is definitely more challenging for buyers than this time 12 months ago, the latest data from the REINZ shows that prices continue to rise, albeit at a slower rate.”
George said the drop in the number of people holding out for property prices to reduce suggests that people could be facing up to the strong possibility that prices won’t crash.
The survey also revealed that the number of people living further away because of price, has risen from 8% to 13%. Regionally, Wellington showed an increase from 11% of people last year to 18% this year but the biggest increase is in the Waikato region, which has jumped from 8% to 17%.
George went on to say that: "Although it's clear that LVR and bank lending restrictions are having an effect on the market, it's also clear that the pressure and challenges facing home buyers continue.
“However, there does look to be a change in attitude with more buyers working with the realities of today’s market instead of holding on and hoping for a major change in the future," he said.
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Canstar Blue general manager Jose George said last year results showed 11% of buyers were holding out for substantial price drops. In Auckland and Wellington, the drop is even bigger this year, going from 15% to 6% for Auckland and 5% for Wellington this year.
“It’s an interesting scenario because although the property market is definitely more challenging for buyers than this time 12 months ago, the latest data from the REINZ shows that prices continue to rise, albeit at a slower rate.”
George said the drop in the number of people holding out for property prices to reduce suggests that people could be facing up to the strong possibility that prices won’t crash.
The survey also revealed that the number of people living further away because of price, has risen from 8% to 13%. Regionally, Wellington showed an increase from 11% of people last year to 18% this year but the biggest increase is in the Waikato region, which has jumped from 8% to 17%.
George went on to say that: "Although it's clear that LVR and bank lending restrictions are having an effect on the market, it's also clear that the pressure and challenges facing home buyers continue.
“However, there does look to be a change in attitude with more buyers working with the realities of today’s market instead of holding on and hoping for a major change in the future," he said.
Related stories:
Property expectations hit six-year low
Property market bounces back
