What is happening in the market?
Well, it is certainly interesting times at present, in Real Estate. The market is always changing and the old saying rings true "change is the only constant". We are certainly seeing change at the moment with the Foreign Buyer Ban starting to bite, the AML (anti-money laundering bill) coming into effect with all its due diligence requirements, the Healthy Homes Act, changes to the Residential Tenancy Act, Kiwi-Build, etc... all starting to take effect. What does it all mean? Well, if you are a Kiwi, Australian or Singaporean, or a Permanent Resident, then not as much. For others, it is going to be much harder to buy a home in NZ. For anyone buying or selling property through a trust, a company structure or with funds from a 3rd party (parents, overseas bank accounts, trust accounts, etc) expect far greater scrutiny of your source of wealth. The changes to residential property rules are making some landlords pull out of the market place as it all gets "too hard" for some and the risk/reward balance seems less attractive to them. This means that there are a few more homes on the market for first home buyers (with less investor competition) which is a good thing for first home buyers and hopefully we will see some who have been renters now become home buyers and get on the property ladder. Another big change that is coming is the increased demand for smaller homes as the baby boomers downsize from big family homes and the number of smaller families also increase, and they all seek modern, warm, low maintence homes close to amenities. And finally the banks are tightening their rules and lending criteria and tweaking it all the time, making it difficult for those who do not fit "in the box" to get mortgage funding at a level they might wish. It all makes for interesting times, but here in Taranaki we have not felt the big property gain/boom like other areas and we will also feel the slow down a little less harshly than other areas, I suspect...so what this all means is this...In Taranaki, there is still good demand for solid family homes and affordable lifestyle blocks, with bigger demand for affordable first homes and smaller homes. Coastal locations are having good interest also over summer. The upper part of the market is slowing slightly but may pick up as industry and employment start to grow again.
We are getting very good interest from outside the region from people looking to escape the "rat race" in bigger centres both overseas and also within NZ and want to return "home" or move here to enjoy our enviable lifestyle, so we will continue to enjoy good demand for all kinds of homes in Taranaki into the forseeeable future, I believe. What do you think? I'd love to hear from you.