With the real estate climate shifting considerably in the first half of 2022, many properties for sale are sitting on the market longer that expected, with the median days to sell increasing significantly across our regions. The impact of this is that some sellers are struggling to achieve time-sensitive goals that are dictated by the sale of their home. Renting out your home is a great alternative to selling that could suit a number of circumstances.
If you have listed your property for sale in the past few months, you may have discovered that sellers are experiencing a completely different property market than this time last year. Median days to sell for the Bay of Plenty was 55 for June 2022, an increase of 24 days from June 2021. For both Waikato and Northland, median days to sell has increased 15 days from this time last year.
In addition to stock sitting on the market for a lot longer than what we have become accustomed to, the inflated sale prices have shown signs of slowing, with major banks projecting a significant drop in property values in the next 12 months.
So, what is the rental market doing in comparison? Due to the effects of factors such as inflation and changes to lending criteria, there is a significant amount of would-be buyers that have now been excluded from the property market. This, combined with inflation and a shortage of rental properties, has resulted in the residential rental market soaring.
According to an article published by Stuff earlier this year, the national median weekly rent jumped 7% year-on-year to reach $575 in March. In the Bay of Plenty the median weekly rent was actually up 9% year-on-year to a record high $600. The other region to reach a record high was the Waikato, with a 7% year-on-year increase and the median price reaching $520 per week. This means that rentals are currently achieving premium prices.
There are several benefits to renting out your property instead of selling. Read these all here.
How can EVES Property Management help?
If you decide to rent your property out, engaging the services of an EVES property manager will ensure your property is in safe hands. Our team take the hassle out of the process by alleviating a lot of the admin and labour involved with a tenancy.
Here are some of the things our property managers can take care of, on your behalf:
- Screening prospective tenants
- Bond lodgement
- Liaising with contractors when needed
- Conducting inspections
- Conducting rent reviews
- Keeping you up to date with the latest changes to property laws
Find a property manager today or get a free rental appraisal.