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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.
The number of properties sold in May across New Zealand decreased by 46.6% from the same time last year – from 7,477 to 3,990 – as Alert Level 3 restrictions on the real estate market still made it difficult for property sales to occur, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
Property listings in the Auckland have seen a significant increase in the past week as sales begin to return in Level 1 with end to physical distancing requirements and restrictions on gathering sizes.
As the move to Level 1 comes potentially sooner than expected, signs from the market suggest that buyers and sellers are ready to match pace. New data has revealed that both Residential and Apartment sales and listings are slowly starting to climb back up to pre-lockdown levels.
The REINZ Residential Confidence Report for April has shown that activity in the real estate industry was extremely subdued due to COVID-19. In April $1.051 billion of residential property was sold across the country, whereas during a typical April month we would expect to see around $4.358 billion, showing the effect that Alert Level 4 lockdown had on the residential property market in New Zealand.
According to the May 2020 QV House Price Index (HPI) results released by Corelogic this week, the momentum in the property market prior to the pandemic has since been lost. However, with the number of residential property sales extremely low through April and May, a clear and timely understanding of the housing market performance will take a bit more time to become clear.
Mortgage wars heat up once again as banks compete to get first time buyers with their record low home loan interest rates.
It came as no surprise that the Reserve bank has kept the OCR at 0.25 per cent, hinting that it could be dropped lower in the future, just as the market beings to see some return to normalcy as the restrictions are lifted.
According to the CoreLogic QV April 2020 House Price Index results out this week, momentum in the property market continued right up to the level four COVID-19 enforced lockdown. What’s less clear is how property values have performed through April.
A new report from One Roof has revealed that the local property market may recover faster than anticipated, just as the real estate industry prepares for a return to normalcy under Level 2.
The Reserve Bank announced last week that it will be lifting its value ratio restrictions for 12 months with hopes to keep lending and investing afloat in the post COVID-19 economy.
Past four weeks have been a rollercoaster for many as the impact of the COVID-19 has swept the world over with unprecedented uncertainty, the full effect on the housing market is yet to be seen. Quick and decisive action from the Government has helped the country flatten the curve while injecting much needed aid into local businesses and supporting home owners with much needed assistance.
The Government, retail banks and the Reserve Bank are today announcing a major financial support package for home owners and businesses affected by the economic impacts of COVID-19.
As the country and world quickly respond in unprecedented ways to the coronavirus crisis, those watching the property market are watching in kind with uncertainty of the future with experts predicting a fall in house prices and banks dropping mortgage rates in response to the OCR drop.
Economists from Westpac have predicted that effects of the coronavirus on the economy could carry into the housing market. Strong buyer demand reveals buoyant property market in February.