Housing woes no laughing matter

If you’ve been paying attention to the recent property commentary, then you’ll know that now is a good time to buy in Wellington – right?

The headlines tell us the capital’s property market has ‘‘turned a corner’’, that there is a ‘‘staggering’’ increase in the number of homes for sale, and that the power now sits with the buyer.

Real estate agents (unsurprisingly) say now is the best time to buy. And banks are racing to predict the biggest house-price fall since the 1970s.

In April, Wellington’s out-of-control house prices had dropped more than 10% from their peak, leading the country in the biggest decrease. Meanwhile, the number of houses for sale has nearly doubled from a year ago.

But the idea that Wellington’s housing market has suddenly become more desirable for first-home buyers fails to account for the broader set of circumstances locking people out. An increase in houses for sale, and a drop-off in over-inflated prices, doesn’t mean it’s easy to buy a house at the moment.

In fact, ‘‘a perfect storm’’ of factors is blocking first-home buyer aspirations: higher interest rates, Reserve Bank changes to low-deposit loans, controversial Credit Contracts and Consumer Finance Act requirements, and the rising cost of living. It’s clear Wellington isn’t the buyers’ market some make it out to be.

While there might be more houses for sale, they are sitting on the market longer. And that 10.4% drop in prices since October doesn’t mean quite as much when put alongside the 36% annual increase that came before it.

The frustration is clear among those who still feel locked out of buying. Those who have been grinding for the past couple of years, only to realise they may now struggle to save a deposit and service a loan, thanks to rising rents for often subpar, unhealthy rentals; rising interest rates, and the increasing cost of living.

Some of these frustrations have been communicated via a satirical website that takes aim at a Wellington real estate company’s expansive billboard advertising campaign. One spoof billboard reads: ‘‘Looking for a place your family can live? Sell us your blood, and we’ll think about it.’’ Another reads: ‘‘You see a housing crisis. We see an opportunity for portfolio expansion.’’

While the head of the real estate agency might find the signs ‘‘hilarious’’, there’s a sense those engaging with the site are using laughter as a way to keep from crying over Wellington’s housing woes.

Even if someone can afford the $1 million to buy a house in Wellington, many are questioning whether the capital is the best place to spend that money. Places like Christchurch, or even Australian cities, hold increasing appeal for their newer, healthier and low-maintenance properties.

Of course, there is hope on the horizon, with new district plans, increased consent activity, and medium-density projects starting to kick off in the central city. There are more than 7000 new homes planned for the region in the coming two years. But Wellington is still playing catch-up to other main centres.

Moreover, Wellingtonians want to understand the broader vision of a connected, liveable city, which has affordable, high-quality housing stock, connected by low-emissions transport infrastructure, in a location that works for them and their family. They want to know that the city council and developers can deliver on those plans, before they put their hard-earned cash on the line, and jump on to the property merry-go-round.

Many are questioning whether the capital is the best place to spend that $1m on a house.