It may be spring, but it feels like summer if you are watching the property market, as record levels of activity in the market are already hitting summer peaks.

As Auckland comes out of just over three weeks of lockdown at Level 3, many will be surprised to see that the market remained strong throughout, even beating sales records from the same time last year. Mortgage payments for First time buyers have also continued to remain affordable in all regions.

The latest CoreLogic Pain & Gain report shows that the proportion of properties being resold for more than the original purchase price (i.e. a gross profit, or “gain”) in Q2 2020 across New Zealand was 96.1%.

Licensees must comply with these health requirements at alert level 2.

The market has shaken off the effects of the original lockdown with a strong return, as it continues to shake off any fears around the current lockdown, with sales in auction rooms continuing to climb. Economist at the country’s largest banks also predict that the OCR could drop into the negatives in 2021.

Despite what had been described as “inevitable” Auckland was taken by surprise last Tuesday when the government announced that COVID-19 has re-emerged in the community with no identifiable trace to the border. The response has been swift and we are now locally in the midst of a two week Lockdown at Level 3, with the rest of the nation at level 2.

New data has proven that despite the winter blues and post-COVID predictions, the residential market has come back swinging, with a sales success rate that hasn’t been seen in the month of July in over five years.

First Time Buyers have broken records as they claim a record-high share of the mortgage money advanced in June, taking advantage of low mortgage rates post lockdown, mirrored by the sales successes seen in Auckland auction rooms.

The government announced ahead of the election a fund to help low-income first-time buyers into the property market, just as a report announced that mortgage repayments have hit a four-year low.

One of the country’s biggest banks has made it easier for first home buyers to get into their dream home by becoming the first in the market to offer a single rate card. Auction activity continues to be healthy despite being in the middle of winter - showing no signs of slowing down.

Despite the ramifications of the lockdown and the annual expected winter dip, the property market is holding its own, with some welcomed good news in both the residential market and house price predictions.

New figures suggest Auckland's residential property market has possibly fully recovered from the effects of the lockdown conditions that were evident in April and May, with a buyer’s market forming for potential buyers in Auckland.

New data from the Reserve Bank and The Real Estate Industry have indicated that first home buyers are taking the most advantage of low interest rates, no LVRs and declining house prices.

“We have nudged up our house price forecasts on the back of a slightly better economic outlook and lower mortgage rates, but only slightly. We expect that house prices will fall 12% (only a little above our previous forecast of 13½%), but risks are now considered more balanced.”

Supply is finally meeting demand as the market continues to bounce back, with sales remaining steady and low mortgage rates attracting first time buyers.