If 2022 hasn’t been enough of a year of change for some, it’s also local election year. Local elections decide who represents us in our city, district and regional councils. These people not only set rates and oversee town planning, they also make decisions about daily services within our towns and cities such as rubbish collections. They are the decision makers for the future of their elected area and they help decide how general amenities such as parks and libraries will operate too.
However, do these political events impact the housing market?
At Harcourts we traditionally see a dip in the number of new listings and sales in the weeks leading up to a general election, as much as 20%, but traditionally we haven’t seen local elections impact the housing market in the same way.
New Zealander’s are a nation of homeowners, home builders and a nation who understands well the positive impact on social cohesion and family life that owning your own home has. Wrapped around this is the intimate understanding of the importance of securing your own financial future, rather than investing in the hope that an elected expert will look after us later in life.
When I’m asked the best time to list a property for sale, I generally advise people to sell when everyone else is sitting back and waiting to see what happens. If you list your property to sell in winter, you will have less competition. Listings might dip in the colder months, but it doesn’t mean there are less interested buyers.
The same is true of election time. There are still many interested buyers actively looking for property, and right now there is less choice available to them. Currently we have a market with more choice and easing prices, which should on the face of it make buying easier, but we have higher interest rates, LVR rules still in place and inflation at record levels making the servicing of mortgage borrowings more difficult than during 2021.
The practical advice for home buyers is to get your finances and affairs in order so when you are ready to buy, you are ready to go. All other factors fluctuate and over time owning beats renting, in so many ways. Trying to time the market will lead to frustration and failure as the market moves at its own pulse, and upwards over time.
Regardless of what happens during the upcoming local elections, our economy seems to be on the up and I don’t anticipate that there is suddenly going to be a reason you shouldn’t sell. Don’t wait until we’re halfway into spring and don’t wait for the election results. If the time is right for you to buy or sell, there’s no better time than now.
Bryan Thomson
Managing Director
Harcourts New Zealand
