A month on from the re-emergence of Covid 19 in New Zealand, property prices are showing resilience to the current economic and social restrictions.
The market has suffered a delay in the number of properties coming to the market as a result of these restrictions. Meaning that the supply will be constrained as we roll into the traditionally higher listing period of spring and summer.
Property values though are holding up against the backdrop of ultra-low interest rates and a lack of supply. Demand for mortgages remains firm, couple this with the lower listing activity in the market and this helps to underpin the stability in the current property prices.
First time homebuyers are out in force actively looking, encouraged by lower interest rates and increased deposits as a result of savings during the March to May lockdown and the lack of overseas travel. Centres more reliant on agriculture than tourism have seen this stability continue.
New Zealanders currently living overseas are also actively in the market looking to New Zealand as a safer place in which they wish they want to live and raise their families. Although the impact of these buyers may not be seen immediately as they will need to make the return to New Zealand and the serviceability of a mortgage from any job they will secure.
What this does translate to though, is all in all a very different picture than the one we were expecting as we went into the current restrictions. This is evidenced with more people attending open homes and auctions.
The current election process is also having little or no impact on the prices or activity. Much of this is believed that to be as a result of the fact that there are no real housing policies in either of the main party’s manifesto. Apart from the long-standing cry from both of them to build more homes which underpins the lack of supply in the country.
If you want to know more about how this affects you then give Victoria a call.