As we roll through October the housing market trends which were published this week have, for the most part remained unchanged. The market is still firmly leaning towards sellers as we mentioned last month.
Tony Alexander, chief economist at the Bank of New Zealand this week released the October BNZ REINZ Residential Market Survey. While he noted no major changes in trends over the past month, he did present an interesting finding: The numbers of investors looking at real estate is rising.
This finding also reflects what we here at The Property Market have been seeing when we show homes. That there are in fact, a rising number of investors active within the market looking to buy rental properties for investment.
What does this mean for you?
Unfortunately it’s not particularly good news for buyers. With greater numbers of investors appearing, there will be greater competition for the stock of residential property currently available. This will affect first home buyers, mainly because investors tend to have deeper pockets and may be prepared to pay more. Investors tend to have their finance established before making offers and they may also have greater equity, which pushes up the price they can afford to pay.
However the increasing number of investors is definitely good news for sellers. The main benefit to sellers is a much wider pool of enquiries for every house on the market. The result of this is greater competition for the available properties and quicker buying decisions.