With 2022 almost over, it’s time to start thinking about what the next year might hold for New Zealand’s housing market. Will values continue to rise? Will there be more first-time buyers entering the market? Here’s a look at what experts are predicting for New Zealand housing values in 2023.

Continued Growth

One of the most common predictions is that housing values in 2023 will continue to grow, albeit at a slower rate than recent years. This is in line with long-term trends; since 1995, house prices have more than quadrupled. While a cooling off period was expected after such strong growth, the pandemic caused this to be greater than anticipated. However, now restrictions are beginning to ease and vaccines are readily available, it’s expected for the market to rebound in 2023.

First-Time Buyers Entering the Market

Another trend expected to continue into 2023 is an increase in first-time buyers entering the market. This is thanks to the growing number of millennials who are ready to purchase first homes. First-time buyers have access to government initiatives such as KiwiSaver and Welcome Home Loans, making it easier to save for a deposit and get on the property ladder.

Increased Demand for Affordable Housing

While there has been strong demand for all types of housing over the past few years, affordable housing demand is at the top. Population growth and low interest rates have made it cheaper to service a mortgage and, in response to this demand, we’re likely to see an increase in new property developments targeting first-time buyers, and lower income individuals. These will likely be in areas with good transport links and access to amenities.

 

The TL;DR

• Housing values will continue to grow in 2023, though slowly,
• First-time buyers will enter the market in increased numbers,
• And there will be increased demand for affordable housing developments, particularly in areas with good transport links and convenient access to amenities.

 

We hope that this blog post has given you a better understanding of what’s involved so that you can make informed decisions about your next investment!

 

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