Norfolk Mortgage Trust: Navigating New Zealand’s Property Market with Confidence
As the New Zealand housing market shows signs of stabilising after a period of significant fluctuations, investors and homeowners alike are watching closely to see how the coming months will unfold. While economic conditions are starting to improve, housing affordability remains a significant challenge, and prospective buyers are having to weigh the appeal of lower interest rates and abundant options against the risks of job insecurity and a still fragile economy.
At Norfolk Mortgage Trust (NMT), we understand how critical it is to stay informed about the latest property trends when making financial decisions. Our commitment to transparency, expertise, and trustworthiness makes us the ideal partner for your investment needs.
The State of the New Zealand Housing Market: October 2024 Insights
The latest data from the QV House Price Index for October 2024 reveals that the national property market remained relatively flat over the month, with only minor fluctuations. Nationally, home values decreased by an average of 0.8% over the three months to the end of October, an improvement on the 1.6% decline seen in the three months to the end of September and the 2% decline in the three months to the end of August. Added to this, the national average home value of $902,231 is only slightly below where it started at the beginning of the year.
Key highlights include:
- Urban stability: Major cities like Auckland (-0.8%), Christchurch (-0.2%), and Hamilton (-0.6%) show a slowing rate of decline, suggesting a stabilising market.
- Pockets of growth: Nelson (+1.3%), Queenstown (+1.2%), and Whangarei (+0.3%) were among the few areas to experience positive growth.
- Investor activity increasing: With recent interest rate reductions and anticipation of further cuts, investors are beginning to re-enter the market cautiously.
According to QV’s James Wilson, strong economic headwinds are continuing to challenge the housing market despite improved consumer confidence and an expectation of further interest rate cuts. This mix of factors is creating a more favourable environment for buyers, however a surplus of available properties and concerns about rising unemployment are keeping prices subdued. While interest rate relief is on the horizon, its effects will take time to materialise.
In the meantime, market activity is gradually increasing, led by first-home buyers, with investors and owner-occupiers also beginning to re-engage.
Opportunities and Challenges for Investors
The current market presents both opportunities and challenges:
- Opportunities: Falling interest rates and increased housing inventory give buyers more options. Active interest is returning, particularly among first-home buyers and long-term investors.
- Challenges: Rising unemployment and affordability issues continue to temper the market, making it essential for buyers to assess risks carefully.
Areas like Auckland’s inner suburbs and new-build developments are seeing renewed buyer activity, while smaller markets like Nelson and Queenstown are gaining attention for their relative stability.
Norfolk Mortgage Trust: Your Trusted Investment Partner
While the property market finds itself on the road to recovery, Norfolk Mortgage Trust continues to provide investors with consistent and competitive monthly returns.
With a current rate of 7.50% p.a.* (from 30 May to 30th October 2024) our track record speaks for itself.**
Our experienced management team’s unwavering commitment to rigorous borrower evaluation, conservative lending practices, and a diversified portfolio make us the ideal partner to help you navigate these uncertain times.
Whether you’re exploring property investment for the first time or looking to diversify your portfolio, Norfolk Mortgage Trust is here to help you every step of the way.
*annualised pre-tax distribution rate, **Past performance is not indicative of future performance.
Final Thoughts
The New Zealand property market is showing signs of steadying, offering a cautiously optimistic outlook for the months ahead. With Norfolk Mortgage Trust, you can navigate this landscape with confidence, knowing your investments are managed by experts who prioritise your goals.
Invest with confidence. Invest with Norfolk Mortgage Trust.
Watch our short video to learn more about how the Trust works and what you can expect from your investment.
For more information and the opportunity to discuss Norfolk’s approach to lending contact Norfolk Mortgage Trust today.
Data Source: QV House Price Index for October 24