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Listings Still Low, Prices Still High

Victoria Day – Harcourts Pukekohe

by Victoria Day, Harcourts Pukekohe

Sales volumes in September were nothing but exceptional and this continued into October. The estimated total for September sales of 9,666 was the single strongest month for more than four years, and it ranks sixth in the list of most active months dating back to May 2007. Given that year to date volumes are essentially at parity with the same stage in 2019, there is probably still some ‘catch up’ growth taking place after the lull of April/May. Even so, considering the current economic environment, they’re still some impressive sales figures.

Moreover, sales volumes may have been higher still, if not for the shortage of listings actually available on the market. With mortgage credit still accessible, and interest rates low, the strength of buyer demand is not giving that listings situation any time to resolve itself, and this is feeding through into higher prices. The General Election has also obviously been and gone, with no material effect on the market – [luckily we live here in New Zealand as opposed to the USA].

Nationwide property value growth accelerated over the month, increasing 1.3% after already beginning to lift in September (0.8%). Just as the economy appears to have bounced back, the property market is growing at a faster rate than before COVID (1.1% monthly growth in February 2020).

Mortgage lending flows remained strong in September, with the figure of $7.3bn almost $2bn higher than the same month last year. The share of investor lending being approved at >70% LVRs has also grown sharply in recent months. The reserve bank has left its official cash rate unchanged at 0.25per cent, in line with market expectations with economist hinting that the OCR will drop to zero in 2021.

Now is a great time to buy an investment or sell and either upsize or downsize – so if you want to know how this market has affected your potential house value then give me a call – happy to help – I could be the key to your next adventure.

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elocal Digital Edition – December 2020 (#237)

elocal Digital Edition
December 2020 (#237)

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