It’s great news that our coronavirus restrictions have been lifted across New Zealand. And it means that we’re well and truly back in business when it comes to real estate.
Of course, we never really went away. Many homeowners have been able to sell their homes through the COVID-19 crisis thanks to technology such as 3D walkthroughs and online auctions.
But it’s excellent to be able to host open houses and private inspections again – and deliver the best possible prices for our clients.
In fact, property prices have held incredibly well despite predictions of the worst recession since the Great Depression, or even a repeat of the 1975-80 period when property values fell 38%.
None of that has happened. In part, that’s because so many homes were pulled off the market by owners who had wanted to sell but feared they’d not get their desired price.
Overnight, this dramatically affected supply and demand, and we’re still seeing more buyers in the market than houses available.
This is supported by data from Barfoot & Thompson, which found the number of sold Auckland properties dropped 50%. However the average price fell in April fell just 1.6 per cent compared with the corresponding period last year.
So, if you’re a homeowner considering when to jump into the market, you’re in a perfect position to do so now.
You have the predictability of stable prices, a super-low cash rate at 0.75% and the whole country buoyed by a return to normality. Additionally, there are no longer LVR (loan-to-value) lending restrictions, which will help power the market along.
Government and business are also anxious to see the property market bounce back. Our low inflation rate has policymakers concerned, and they’ll be much happier when property values begin to rise again.
So will the banks, who have lent against property when times were more optimistic. And of course, the Government is keen for the market to return to normal transaction levels to increase its tax receipts.
These factors all point in the right direction if you want to put your property on the market and we believe you’ll profit more by moving quickly.
Those who wait for the traditional spring selling season may well find the market is over-supplied, and this could lead to a dip in prices. It will undoubtedly put buyers in a much better position to negotiate.
So, if you’re trying to weigh up the best time to jump into the market, why not drop us a line and we’ll be happy to discuss your options.