February provides real estate window of opportunity – Century 21 boss

Now might be a good time to talk to a broker or bank about rates, he says

By Mina Martin

11 Feb 2022

Tim Kearins, owner of Century 21 New Zealand, said there is a “real window of opportunity” in the real estate market this February, with “real estate activity more noticeable and good properties still commanding great prices.”

Kearins’ comments come ahead of the Reserve Bank announcing the next official cash rate on Feb. 23, with the consensus being interest rates will continue to rise.

Buyers and sellers are using this period well, with now arguably a good time to talk to a broker or bank about mortgage rates,” Kearins said. “Buyers who managed to get lending pre-approval before the Credit Contract & Consumer Finance Act (CCCFA) changes took effect on December 1 also remain in the market and motivated to secure a property this month.”

Kearins said people are looking forward to the Real Estate Institute’s Monthly Property Report for January, which will be released next week. December’s national median house price dropped 1.6% when compared to November, with January also expected to show some market softening.

“The CCCFA has meant banks now need to conduct ultra-conservative assessments on all new borrowers,” Kearins said. “What’s more, Reserve Bank restrictions see many fewer first-home buyers now allowed to borrow more than 80% of a property’s value. Such factors are adding some downward pressure, particularly in the first-home market. However, section sales are in high demand and most top-end homes continue to achieve great results.”

Kearins noted that while auction activity is generally down, strong buyer demand remains, with an overall shortage of listings nationwide. This, in turn, is constraining sales volumes.

“Buyers realise now is good time to act with interest rates only set to rise and borrowing increasingly harder to achieve,” Kearins said. “A greater percentage of houses now for sale by negotiation is also giving buyers a better chance to line up their finance and land their dream home.”