Monthly Market Update | July 2020
Market maintains momentum
So far COVID-19 has proven no match for the Auckland real estate market. In the two days following Auckland’s move into Alert level 3 Harcourts Cooper & Co conducted 16 virtual auctions with 12 of these selling under the virtual hammer.
REINZ data recently released for July shows improvements in all major performance indicators of the North Shore market when compared to the same month last year; sales volumes were up 27% to 389, prices up 9% to $1,070,000 and days on the market reducing to 37.
Under level 3 online Auctions continue along with restricted one on one viewings & pre-settlement inspections. People can still buy & sell real estate and move homes.
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 and these have been further accentuated by the volume of New Zealander’s returning home.
Monthly Market Update | June 2020
June Property Surge
North Shore property sales in June exceeded predictions. Sales volumes jumping 14% on the prior year with a median price of $1,060,000 being 7.3% ahead of last year.
Harcourts Cooper & Co closely monitor market metrics and our internal data has shown an average of over 1,700 property inspections being conducted every week by our team over the past month. In June, 37% of the sales by our team were under $1M, 55% in the $1 – $2M bracket, and 8% of sales exceeded $2M.
Post-covid, the energy & optimism in the market is evident. In June Harcourts Cooper & Co conducted 96 Auctions, with 74% of them sold. The right properties, well marketed, are in hot demand and achieving fantastic results!
Whilst there were predictions that house prices would fall, we are yet to see any evidence of that happening. In June every region in the country saw an increase on the same period last year. Kiwi’s love affair with property continues fuelled by low interest rates and kiwi’s returning to New Zealand from abroad.
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.