Monthly Market Update | April 2020
Indicators point to a swift recovery of the property market
The Harcourts Cooper & Co sales team are reporting strong activity in the market. Despite sales volumes in April being down just shy of 80%, in the 7 days following NZ moving into alert level 3 the team completed 785 physical property inspections across Auckland’s North Shore & North West. This resulted in 87 written offers and 36 contracts. Whilst these numbers are far lower than usual, they are encouraging for the first week in level 3.
As we moved into level 2 this week it adds further momentum to the property market with open homes & Auctions recommencing and real estate offices reopening. All of which are subject to strict criteria to protect the health & safety of all.
Pre Covid-19 the Auckland market was in a strong position with increasing sales volumes and prices and early indicators suggest this momentum is rebuilding post Covid-19 restrictions. Whilst it will take time to confirm the longer-term position of the market, the factors that were driving the market pre Covid-19 predominantly remain.
Monthly Market Update | March 2020
Pre Lockdown High
As New Zealand prepared to enter lockdown on the 25th March, a flurry of real estate activity occurred concluding deals. This was a continuum from the high energy, high volume market experienced for the preceding 5 months.
Pre-lockdown the market was on a high; there were 412 sales on the North Shore up 30% from the year before. Prices remained strong; the North Shore median of $1,130,000 in March was up 11% on the year before.
We now await the announcement of when we move from level 4 to level 3, which will ease some restrictions. For real estate it will mean people can move homes, one on one viewings & pre-settlement inspections may be possible subject to public health measures. The industry is awaiting specific government guidelines to confirm this.
The question now is how big will the effects of COVID-19 be on the property market? Ultimately this will be dependant on an array of unknown factors including time in lockdown restrictions, unemployment, market confidence, and the wider economy.
As restrictions ease, the property market will re-engage and likely an initial flurry of activity will occur as a backlog of activity is processed. During lockdown, ‘life events’ requiring real estate transactions have continued; growing families, estate sales, divorces, changing financial situations and with more time spent in our homes some will have decided to make a change.
Looking further, it is forecast interest rates will remain low, New Zealand’s favourable response to Covid-19 has installed confidence that it is a good place to invest and many of the 1 million kiwi’s living abroad may choose to return with their families. We can be further reassured looking at the effect the 1987, 1997 & 2007 economic crises had on the property market… in no case did we see property process decline more than 5% and any price declines had recovered within 18 months.
Property has always been a desirable medium to long term investment and there is no doubt New Zealand remains a highly desirable country to live in.
Monthly Market Update | February 2020
Market Maintains Momentum
February figures just released showed continuing strength & confidence in the property market, with a record North Shore City median price of $1,155,000. When comparing against the same time the previous year; North Shore volumes were up 68%, the median price was up 17% and days on the market reduced by 24 to 39 days!
Whilst there is a strong awareness of the COVID-19, as yet we have seen little impact on the housing market, and demand remains high. Low, stable interest rates are assisting in driving demand.
In February Harcourts Cooper & Co conducted 117 auctions with an 80% success rate, further confirming the demand from qualified buyers continues.
Update for North Shore market based on REINZ statistics for February 2020, released 13th March 2020.
Monthly Market Update | December 2019
Favourable factors for a fast paced 2020 market
December saw a significant upsurge in activity both in the North Shore market and across the country. When comparing against the same time the previous year; North Shore volumes were up 64%, prices were up 7% and days on the market reduced by 7 to 33 days!
This flowed through the Christmas & New Year period with the market energy & activity the strongest we have experienced for several years with large numbers of determined buyers active in the market.
An apparent acknowledgement amongst the buying public that prices are likely to increase again, combined with low interest rates is fuelling the confidence of investors, first home buyers are endeavouring to get on the property ladder before further rises and existing homeowners looking to upgrade.
The high sales volumes have reduced available listings and with multiple active buying segments, this is resulting in a strong demand for quality properties.
An extremely positive start to 2020 with all factors pointing towards a busy year ahead.
Update for North Shore market based on REINZ statistics for December 2019, released 16th January 2020.