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Investors still active in capital, Hutt Valley, muted elsewhere

Wellington and the Hutt Valley have again topped the BNZ-REINZ Residential Market Survey for investor activity, with 37.9% of real estate agents reporting investors active in the market.
However, overall the survey of more than 10,000 licensed real estate agents throughout the country found investor activity muted.
"The New Zealand housing market is becoming less and less driven by investors," it said.
While agents reported investor activity in Wellington and the Hutt Valley, only two other regions saw agents report significant investor buying - Waitakere City (26.9%) and New Plymouth/Hawera/Taranaki (20%).
In contrast to the muted investor activity nationwide, the survey found increased activity from first home buyers.
"First home buyer activity continues to rise very strongly and is perhaps the most notable feature of our survey in recent months."
The survey also found agents believe prices are rising.
"For the fifth month in a row the perception of agents on average is that prices are rising," the survey said.
"But at a net 12% positive this reading is the lowest since the net 5% in June feeling prices were falling."
Agents were also asked what were the main reasons people were buying property at present, with trading down the main factor (17.6%) followed by moving to a new town (13.8%) and trading up (13.6%). Nationwide, just 0.3% of agents cited investing as a reason for people buying.
This months survey also revealed a shift in opinion on whether buyers or sellers were more motivated.
"After four months in which things were quite balanced we have this month seen a strong net 14% of respondents state that they feel the sellers are more motivated than the buyers.
"Our interpretation of the results is that they show a market driven increasingly by first home buyers but as more vendors enter the market wanting to sell there is little sign that prices are facing all that much upward pressure on average."

Tags: hutt valley - bnz-reinz residential market survey


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