Why now is a good time to buy property

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Falling house prices and rising interest rates are making home-buyers wary, but experts say that, if you can afford it, now is a good time to buy.

Prices have been declining for months now, with the Real Estate Institute’s latest figures showing the national median was $825,000 in October, down 7.5% from the same time last year.

The institute’s House Price Index, which measures the changing value of residential property nationwide, is now down 12.4% from its peak in November last year.

Most commentators say prices have not bottomed out yet, and there is more easing to come. Westpac, for example, expects prices to fall a further 10% from where they are now, by the end of 2024.That would mean a 20% decline from their peak last year.

That makes for cheaper options for home-buyers. But interest rates have risen significantly at many banks, since Stats NZ revealed that the rate of inflation barely eased in the September quarter, and this has led to another pullback of buyers from the market.

1. Lower prices mean more affordable options
2. Prices won’t keep falling forever
3. There are lots more houses on the market
4. Interest rates are never static
5. Trying to time the market rarely works

Watch the video below to learn more and get some tips about buying a property:

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