The impact of this Lockdown has been an increase in the rate of property value growth and as before this is in the main due to a reduced number of properties available for sale and our appetite for homes which has been putting extra upward pressure on their values.
Demand has continued and confidence has remained firm in the market - although there are some expectations that there will be a slower rate of growth in the future- a downturn seems very unlikely – unless something unexpected was to hit the economy and labour market. Property remains an attractive option but with the promise of borrowing becoming more difficult over the coming months. We may have seen a temporary lift in the level of desperation for some buyers to purchase. Increasing interest rates, tightening lending standards and discussions on the implementation of debt-to-income ratios / cap in late 2022 may lead to some buyers getting in while they still can.
Monthly values increased in the month of October by 2.1% - this was consistent across the 5 main centers of Auckland, Tauranga, Wellington, Christchurch and Dunedin. All buyers are facing further stretched affordability off the back of such strong value growth of 28.8% in the last year – add to that the likelihood of the cash rate increasing by at least 0.25% this year and more next year to fight strong inflation. That starts to suggest that there is an expectation that sales volume and value growth will ease in 2022
Listings are starting to lift albeit slowly, but they have come off a low level due to the impact of COVID – as a result we are unlikely to see a dramatic drop-in property values. First time home buyers bought 26.4% of sales in the quarter ending September 2021 whether it’s through kiwi saver, the bank of mum and dad and a willingness to compromise on the type or location of their purchase – these have been factors in their increased share of sales.
The Christmas Break is traditionally when we take time to review what the next 12 months has in store for us. It has been a very strange year and the lockdown has perhaps focussed us on making a change. Need to know how the current or future market could affect your plans then give Victoria Day a call – she is # key to your next adventure.
Matuku Estate Subdivision- 37 Moorfield road, Te Kauwhata
Auctions- Thursday 16th December 2021 @ 4pm (unless sold prior)
Two 5000sqm (mol) sections ready to build your dream
home on in a sought after location in the Matuku Estate
in Te Kauwhata. Close to schools, shops, and other
amenities, Just minutes from the motorway and
approx 45 mins drive to both Manukau and Hamilton so
be the centre of it all. Call us for more information.