fbpx

Tony Alexander: Three factors that will push up house prices in 2024

Picture of PropertySage

PropertySage

TRUSTED PROPERTY MANAGEMENT

The New Zealand housing market in 2024 is expected to be impacted by factors such as a decrease in new housing supply, increasing demand due to immigration, potential decrease in interest rates, and changes in tax deductions for investors. The average growth rate of housing prices is expected to be higher this year, particularly in urban areas.

Share Post:

In 2024, the New Zealand housing market will be influenced by several key factors. Firstly, there is a decrease in new housing supply entering the market. The number of building permits issued for new housing construction has decreased, resulting in a limited increase in housing inventory. This shortage of supply coupled with rising demand from immigration has led to difficulties in securing housing and rent increases.

Secondly, there is an anticipated decrease in interest rates. While the exact timing and magnitude of the decrease are uncertain, it is expected to stimulate demand as mortgage rates become more favorable. This could encourage more prospective home-buyers to enter the market.

Other factors include certain properties being excluded from the rental pool due to the impact of foreign students and tourists, as well as the expected rise in the unemployment rate from the current 3.9% to 5% within the next year.These factors may cause some hesitation in the real estate market.

Overall, the average growth rate of housing prices is expected to be higher in 2024 compared to 2023 or the period after June. This is expected to put the greatest pressure on urban areas due to the net immigration flow. However, history has shown that even if cities or certain regions lead the way, the rest of the country eventually experiences stable price increases.

Source from oneroof.co.nz: by Tony Alexander
Additional commentary from him can be found at https://www.oneroof.co.nz/news/tony-alexander-three-factors-that-will-push-up-house-prices-in-2024-44841?lid=lycf94w8u0zb&utm_source=braze_campaign&utm_medium=email&utm_campaign=20240111_OR_Newsletter_Generic_Listings_MIN&utm_content=&uuid=22c8b01c-6820-4210-bd4c-003f640666d9
The opinions and research contained in this article are provided for information purposes only, are intended to be general in nature, and do not take into account your financial situation or goals.

Stay Connected

More News & Blog

What You Should Know as a Landlord Before Renting Your Property

Renting out your property in New Zealand can be rewarding, but it’s essential to understand the rental market and your legal obligations as a landlord. Ensure your property is well-maintained, set clear expectations for tenants, and communicate openly to foster a positive relationship. Remember, at PropertySage, we’re here to support you every step of the way in your rental journey!

Rate cuts haven’t pumped up house prices yet -Corelogic

CoreLogic’s Home Value Index reported a 0.5% drop in property values in September, marking the seventh consecutive month of decline and a total decrease of 4.7% since February. While values remain 16% higher than pre-COVID levels, they are nearly 18% below the post-COVID peak. In Auckland, most areas saw declines, indicating ongoing weakness in the housing market.

When Is the Right Time to Invest in Property?

If you’re thinking about investing in property, you might wonder when the best time is to jump in. As a property manager in Auckland, I can tell you that while it’s hard to find the perfect moment, understanding the current market can help you make smart choices.