If you've been daydreaming about a little more room, say, an extra bedroom, a second living space, or even just a bigger backyard, you're not alone.
Many of my clients are in that “next chapter” phase of homeownership, and lately, I’ve been having more conversations with people wondering if now might be the right time to trade up.
Here’s what I’ve been seeing: while it’s never been exactly cheap to move up the property ladder, recent market shifts suggest that right now might actually be a more favourable time to make that move.
So, what is the “trade-up premium”?
In simple terms, the trade-up premium is the extra amount you’d need to spend (or borrow) to move from a three-bedroom to a four-bedroom home. It’s not the only way people upgrade, of course; some are after a newer home, a better location, or more land. However, for many Kiwi families, it’s that extra space that signals a significant lifestyle step forward.
Nationally, that gap remains significant, often $100,000 or more, but recent data indicate it’s narrowing in many areas. This is particularly interesting for homeowners who might already have good equity built up in their current home.
What’s changing?
Here in the South Island, areas like the Mackenzie region are offering more affordable trade-up options. Notably, prices for larger homes & non-Hydro era properties, sections are stable & so too are the Hydro & mid-market levels in Twizel.
That means the gap between what you have and what you want could be a little easier to bridge than it was even a year ago.
What’s making this easier right now?
Here are a few things working in your favour if you’re thinking about making a move:
Interest rates have steadily declined in recent months
More listings on the market = more choice
Softened trade-up premiums in many regions
Life moments like growing families, working from home, or wanting room for guests continue to prompt homeowners to re-evaluate their space
Of course, every situation is unique. You may need to sell before you buy, and some buyers are still navigating conditional offers, but overall, the conditions are more balanced than they have been in recent years.
What’s happening in our local market?
Locally in Twizel and the wider Mackenzie area, I’ve seen buyers begin to reconsider building versus buying especially when looking for more bedrooms, better energy efficiency, or a home that suits long-term lifestyle goals like multi-generational living or holiday home flexibility.
Mackenzie continues to sit among the regions with a $300K+ trade-up premium but like other areas, we’re seeing more price adjustments and motivated vendors. If you already own a home here, that could make now a smart time to leverage your equity and consider what’s next.
Thinking of trading up?
If you’re curious about what the next step might look like for you, whether that’s a four-bedroom home, a section to build on, or simply exploring your options, I’m here to help. Let’s discuss your goals, conduct a current market appraisal, and determine if now is really the right time to make your move.
Because the next sold story?
It could be yours.
Coralie Reid
One Agency – Twizel
