Mortgage broker StuartWills, of Mortgage Managers
Stuart Wills has been in the business since 1997. He says he has seen the market go up and down in that time, although generally over a 10-year period it has always risen.
Is it a good time to buy?
‘‘It depends on the situation. Over time the market has always gone up. If I was a first-home buyer, I wouldn’t have any qualms about buying now.
‘‘Yes, the prices could drop further, but in five or 10 years, they will have risen.
‘‘Rents are going up, too. The good thing about buying a house is you’remore in control of your own destiny. They can’t put the rent up, or require you tomove.
‘‘If you buy a property you can fix it for a decent time and quantify what the payments are.’’
What strategies should home buyers employ in this market to get a bargain?
‘‘The key things is that buyers have more time to make amore considered decision. Six months ago, people were buyingwithout checking properly, but now you can take more time.
‘‘Other buyers can also work on their ‘account conduct issues’. If they have bought rubbish, now is a good time to sit back and tidy that up.
‘‘They may also be able to sell something like a boat to raise more of a deposit. They have the time to do that when previously they didn’t. Houses were being snapped up really quickly and oftenwith three or four bidders.
‘‘Buyers can also negotiate conditions – I have a client at the moment trying to get a five-week settlement.’’
Is it a good time to buy?
‘‘People are motivated to buy and sell a property for different reasons. For those who are ready to upsize, downsize, make a lifestyle change, or start a family, now is the right time to look to buy a new home.’’
Will people get a bargain in the current market, and how should they try to?
‘‘Looking at last month’s REINZ figures, we’re seeing stock levels are up, sales are taking a little longer and there is less urgency in the market, which means buyers have more choice and time to make the right decisions for them.
‘‘As that demand-side pressure eases, so too does upward pressure on prices.
‘‘And the figures suggest that we are shifting to amarket that favours buyers.
‘‘That said, increases to the official cash rate – up
50 basis points on April 13, and with an outlook of further increases – tighter lending criteria, and prices that are still 7.9% up on this time last year will moderate buyer demand.’’