Monthly Market Update | October 2020
Market momentum continues at full speed
2020 has been the year for extremes for the property market, amongst other sectors. October results producing some of the highest numbers in history both volume and price based, yet only 6 months ago with the country in lockdown, April showing some of the lowest ever seen. The big question remains is what will the next 6 months produce?
Demand remains strong across all sectors of the market, yet supply is still restricted. Whilst listing volumes are up, they are still struggling to keep up with the demand of active buyers. The Reserve Bank’s announcement this week that they are looking at reinstating LVR restrictions again in March 2021 is likely to further fuel demand prior to this. Investors who will potentially be most affected by the LVR restrictions will be particularly active.
Research this week released by KEA (Kiwi Expats Association) outlines that whilst over 50,000 kiwis have returned home this year, that it is likely to be just the beginning with expectations a further 250,000 will be looking to return in the next two years, placing additional demand on our already short supplied housing market.
Auctions remain a very popular method for both buyers and sellers to transact in a transparent manner in this quickly evolving market.
Auckland region’s median house price hit the million-dollar mark for the first time, setting a new record. North Shore’s median price for October was $1,150,000 up 17.3% from the same time last year, whilst average days on the market have reduced to just 32.
Low interest rates continue further fuel to an already hot market.
All in all very positive signs of a market remaining at full speed through the festive season.
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.