on the couch with Glyn Delany and Callum Gilchrist of Team Delany
Experts in their field, Summit Real Estates top sales team, Glyn Delany and Callum Gilchrist, make up Team Delany. They share some insights on current property trends and what we should consider.
How is the property market trending at the moment?
The current market is still steady despite what you may read or hear. We feel our region tends to buck most trends because we are such a desirable place to live. In saying this, there has been a significant drop in values in our region since the peak in early 2022, we are back to where values were approximately 12 to 18 months ago – which is still well ahead of where they were two years ago. We feel the market is beginning to level out, but probably has some further correction to go yet before it begins to stabilize.
What advice can you give to property sellers and investors?
If you are thinking of buying or selling, there is literally no better time than now as the longer you leave it to buy the higher the interest rate you will be paying, and if you are selling the longer you leave it the greater the risk of the unknown value in our current climate. We hear the argument all the time that values are going to go down considerably in the coming months. We feel, while you wait for this to possibly happen, the interest rates are going to affect you considerably more than a small drop in value, so our advice is to act now rather than wait and hope, as in the long run, it could cost you more.
What types of challenges are you seeing that differ from previous years?
The biggest challenge is the uncertainty the world faces and the buyers having a fear of overpaying (FOOP), this is a complete 360 from 12 months ago when there was a fear of missing out (FOMO). This is all generated from a change in stock levels, this time last year there was a total of 250 properties on the market in our region, today there are 800, slowing the market down as there is more choice. The next challenge is the rising cost of living and the rising interest rates. This has a direct impact on values as potential purchasers can borrow less, also lending rules and regulations have become far tighter making it more difficult for people to secure loans.
Where do overseas investors sit in the current market?
With the overseas investment act enforced, overseas investors are very quiet at the moment. For that matter, investors overall are very quiet. The only place we see investors in our current market are in building new homes for either rentals or to sell, as this is where the government has pushed them with the new rules implemented on investors and tax breaks they have been offered on new homes.
nelson magazine article | dec 2022