Fewer people have faith that now is a good time to buy and sell residential property, according to the latest survey by Quotable Value (QV).When QV conducted its last survey in September, net 41% of people believed it was a good time to buy. But last mont
Fewer people have faith that now is a good time to buy and sell residential property, according to the latest survey by Quotable Value (QV).
When QV conducted its last survey in September, net 41% of people believed it was a good time to buy. But last month only net 23% of those surveyed thought it was a good time to buy.
In the six months from September to March, the residential property market looks as if it were steady during the period. In September, the average price of a house was $350,000 and 6464 sold that month. In March, 6161 homes sold and the average price was $360,500.
There were also fewer people looking to buy last month compared to September, yet more were looking to sell.
“The number of people intending to buy in the next 12 months has dropped to 40% of respondents, with an equal 40% intending to sell,” the QV report said, adding that high levels of unsold stock were a problem.
“In fact the imbalance may grow as buyers exercise caution, are in no hurry to make an offer, and are expecting prices to fall further.”
The majority of people now expect prices will drop, compared to most thinking they would rise back in September.
“This may signal that buyers have an expectation that prices will drop and will reflect this in offers they make for properties on the market,” QV’s report said.
A net 39% of those surveyed expected prices to fall, compared to 45% being convinced they would rise in September. Only 12% now think house prices will rise, while 32% expect the prices will stay steady.
The uncertainty surrounding tax changes that will be included in the Budget to be announced in May have unsettled the market too, the survey’s results confirmed.
Of those surveyed, 49% said they were waiting to see what happens before “a clearer picture” is given about how property tax will be changed.
