It has been a relatively quiet start to the year for Nelson’s residential property market with homes taking longer to sell and more properties available, meaning buyers can be more selective.
The latest Quotable Value (QV) statistics show that the average home value has fallen by 1.1 per cent in the three months from 1 November 2022 to 31 January 2023.
The average property value for the region is now $801,902, which is 9.2 per cent lower than the same time last year, with further reductions likely in the coming weeks and months.
QV Nelson/Marlborough manager Craig Russell says properties were increasingly taking longer to sell, with numerous listings having price reductions.
“Local buyers are being much more selective than they have in recent years, so real estate agents are having to actively manage vendors' sale price expectations in order to generate sales,” he says.
“The number of properties available on the market is steadily increasing and is now significantly higher than this time last year. There also appears to be an oversupply of vacant sections, with discounting continuing when sites have failed to attract interest after a few months on the market.”
QV chief operating officer, David Nagel, says how the rest of the year will pan out is uncertain.
“Has the property market started 2023 how it will go on? Only time will tell for certain, but it certainly looks as though the market hasn’t hit bottom yet,” he says.
“As a result, it seems many prospective buyers are being very cautious right now, waiting to see exactly how far prices will fall. Others are finding it too difficult to obtain finance or are unwilling to make such a commitment given the very high level of economic uncertainty right now.”
