.jpg)
February 11, 2025
Deciding whether to purchase land now or wait involves analyzing current market trends, economic indicators, and personal circumstances. Here's an overview to assist your decision-making process:
As of early 2025, New Zealand's property market is exhibiting signs of stabilisation. The CoreLogic Home Value Index reported a slight national property value decrease of 0.1% in January, marking the fifth consecutive month of minimal movement. This trend suggests that the market may be approaching a trough, with potential for future growth.
Recent reductions in mortgage rates have provided relief for many buyers. Lower interest rates enhance housing affordability, particularly for first-time buyers, by reducing mortgage servicing costs. However, affordability challenges persist due to high property prices relative to incomes.
The number of new property listings increased by 17% year-on-year in January, indicating growing vendor confidence. Despite this influx, buyer activity remains high, driven by lower interest rates and increased market confidence. This dynamic can lead to heightened competition for available properties.
While the housing market shows signs of stabilisation, challenges such as a softening labor market and global economic uncertainties could impact future demand. It's essential to monitor these factors, as they can influence property values and the broader market outlook.
Property analysts suggest that the combination of lower interest rates and sustained demand may make the current period opportune for purchasing land. However, it's crucial to consider personal financial circumstances and long-term goals.
Given the projected stabilisation in property values and favourable interest rate environment, buying land now could be advantageous. Nonetheless, it's essential to conduct thorough research, assess your financial situation, and consult with real estate professionals to make an informed decision.
Source:
KEY2 Real Estate, Core Logic, OneRoof
.png)
.png)
