When is the best time to buy a house?

We sure do live in interesting times. With unprecedented financial conditions, the market for real estate has been quite volatile in the last two years. But things are definitely improving, with almost all parts of New Zealand reporting positive growth in the real estate sector.

We are of course quite fortunate in Nelson, being blessed with such a wonderful climate, and such a diverse natural environment, demand for property here remains above the national average.

That being said, buyers are still in a strong position, with interest rates remaining low, now might be one of the best times in recent memory. While today’s real estate market does offer advantages to buyers, you still need to do your research.

We have been selling property in the Nelson region of over 25 years, so we have a pretty good feel for these things by now. As a buyer, we have some advice we think it is important to keep in mind:

Don’t Try to Time the Market.

Property in Nelson sells – and even in today’s climate, properties are selling quickly.

While property prices are certainly not climbing like they were a few years ago, you may be tempted to wait and see how the market is going to move.
Do you research and you will see that property prices are moving, but they are moving up not down. So even in these interesting financial times, timing the market is not very likely to pay off.
Sellers are being smart, and pricing their properties properly, not according to past sakes, but according to what the market will bear – because they want to sell their property in a timely fashion.

In short, properties are selling!

Shop Around. But Don’t Wait Too Long.

We like to say there are six rules to real estate, ‘Location, Location, Location, and Research, research, research’.

Get to know the market. While there is an increase in properties for sale,
the good ones are moving quickly, so stay informed. More often than not,
it’s the new listings that move the quickest.
Some don’t even get to the press.
Like many real estate agents in the region, we maintain a list of active purchasers, many of whom subscribe to our property informer, and as new listings come online, we let them know.
So, don’t procrastinate – if you have found a property you love, put in your bid and negotiate.

Don’t provide an opportunity for another buyer to make an offer – because they will!

Watch the Banks!

Interest rates are still moving around the 5% mark, and banks are under pressure to push these back up. While the government would prefer if they got even lower. This makes for an interesting time, and more than ever you need to shop around for finance. Get familiar with http://www.sorted.org.nz and http://www.interest.co.nz . It can be a good time to buy.

Negotiate!

The sooner you get an offer in to a Seller, the sooner you can begin to negotiate. Remember though, that it is not always just about the price.
Until you get serious, you are just another viewer, and you will not be getting the sellers attention.
The best way to get their attention, is, and always has been to put in an offer.
Then the real deal-making can begin.