John Matthews has been in the real estate industry now just short of 10 years and over that time he has seen major changes. John was able to tell us that the real estate market today is driven by supply and demand. In 2021, the housing market hit its peak, and those looking to purchase resulted in overpaying large amounts more than the cost of the property was actually worth. Sadly this was now showing cause and effect as the rate of inflation is increasing, and insurance rates are out of control. Many families are having to sell their properties for less than what they paid. Rates increases of up to 30% in the last two years is proving that housing is becoming unaffordable to the ordinary family.
There are not enough buyers as opposed to listings, with approximately 525 houses for sale in the Lower Hutt area alone. People are becoming cautious with their money and are struggling. The Government job losses in Wellington are affecting buyer's confidence.
John informed us insurers are taking their coverage one step further. In the future the Titles to properties could have the words added 'this property is listed in a flood zone or a slip zone'. If this is indeed added to your title, the property will not be covered for a natural disaster occurrence.
That said, a house will still sell if presented properly, however long it takes. The onus will be on the property owner to ensure their house is in prime condition to sell. When questioned as to the validity of a statement about the Hutt requiring 3500 more houses, John replied that some companies have found the newly built terraced houses are not selling because of the problems faced such as lack of light and close proximity. One such company has now finished their last build of a multi story complex and is moving to building single level home which is what the market is looking for. There is a massive shortage of single dwelling homes and this will need to be addressed in the near future if the city wants to maintain a stable housing supply.