A steady market, selective buyers and a little cautious optimism

Spring has arrived, but the property market appears to have mastered the art of lying flat while occasionally twitching. The traditional seasonal lift remains elusive, with national prices largely unchanged and buyers enjoying plenty of choice.

There are encouraging signs, however. First-home buyers remain active, business confidence is improving and properties are still selling. Buyers are simply in no particular hurry to part with their money.

Buyers are active, but cautious

Tony Alexander's September real estate agents survey, conducted with NZHL, found a net 40% of agents reporting falling prices, while just 8% observed buyers displaying FOMO (a fear of missing out). 

Some 45% reported buyers concerned about purchasing a property only to see its value decline. Encouragingly, a net 45% reported increased first-home buyer activity, up from 32% in August. However, investor demand remains weak, with a net 46% seeing fewer investors.

Encouraging economic signals

Tony Alexander's October commentary highlights improving business confidence, with a net 52% of businesses optimistic about the economy, 18% expecting to increase employment and 23% anticipating higher capital expenditure.

However, inflation concerns and uncertainty around future borrowing costs continue to temper expectations of a rapid housing recovery.

Across the Coromandel Peninsula

According to realestate.co.nz, 92 new properties were listed across the Coromandel in September, up 10.8% year-on-year. Available stock was also 17.2% higher in August than a year earlier, giving purchasers greater choice and vendors more competition.

On the eastern seaboard, including Mercury Bay, online interest remains encouraging, particularly from buyers outside the region, although enquiries do not always translate into inspections or offers.

Across the Peninsula, buyers are scrutinising property condition, building reports and value. Negotiations are taking longer, with purchasers generally unwilling to commit without thorough due diligence.

The election factor

With the General Election approaching on 7 November, some buyers may prefer to wait. However, Trade Me Property's research found only one in five sellers said the election was influencing their decisions. Affordability, employment security and borrowing costs remain significant considerations.

Looking ahead

The outlook suggests gradual improvement rather than a sudden turnaround, with market conditions likely to vary across the Peninsula.

The eastern coast's holiday-home and lifestyle markets are particularly influenced by discretionary purchasers from Auckland and other centres. On the western coast, permanent residential communities and relatively affordable housing mean employment, household finances and first-home buyer activity can play a greater role.

The approaching summer season offers opportunities for increased activity, although substantial buyer choice will continue to influence negotiations.

For vendors, realistic pricing, good presentation and effective marketing remain essential. For purchasers, the market offers opportunities without the urgency of previous peaks.

The market may be moving slowly, but it is moving. Patience, sound advice and a clear understanding of local conditions remain the best approach for buyers and sellers alike.