Despite a continued cost of living crisis, a positive thing is happening in the Wellington region. House prices have fallen by more than 17% over the course of this year.
This drop in average house price is the largest we have seen in the region in the past 20 years! A major part of this is that supply is seemingly outstripping demand which forces the prices down. It is expected that prices will continue to decline for the time being as interest rates remain high.
However, let us take a look at some simple economics. The law of demand states that as price decreases, demand increases, and vice versa. So, when applying this knowledge there is only one thing that can happen sooner or later. Eventually, demand will jump up again and the supply will diminish which means more people living in the area. Increased population results in increased economic activity which furthers the growth of an area. Now is the time to take advantage of a slower market as no one can know for sure when it will turn the other way around
As the population rises and the supply of available land decreases, it will increase the value of existing properties. So, if there is ever a time to buy it is right now! As always with property, the best time to buy was yesterday and the next best time is today.
At Williams Corporation, we are always building our homes with affordability in mind. To put it into perspective, this drop has caused the average house price in Wellington to be $894,913. Our homes in Wellington start from $599,000. Of all of our available properties in Wellington, the average price is $711,078 which is lower than the region’s average by more than 20%.
If you want to learn more about how this price drop could be the best time for you to get into the market, then get in touch with us today. We would love to hear from you!