Ray White Now New Zealand 19.10.2020 Version 22 - 19 October 2020 - Page 8


“ Each week , we are met with renewed levels of engagement and urgency from the active buyers in the market . Pre-auction offers are a regular occurrence and in most instances , we have multiple bidders on property taken to auction . For those considering selling , I would struggle to think of a better time to do so than right now .”
Martin Honey , Director and Licensee Agent Ray White Royal Oak .
Political stability typically leads to wider economic stability and both of these factors are beneficial to the residential housing market . In contrast to previous cycles however , the general election featured very little in buyers and sellers ’ decision making over the past few weeks so is unlikely to have any further wide-reaching impacts in the short-term . Conditions continue to be favourable for those looking to sell right now and we will discuss some of the contributing factors below .
There are several benefits to selling in the current environment , over and above the imbalance between supply and demand . In addition , low interest rates are providing purchasers with higher ‘ buying power ’, days to sell are continuing to drop which means properties are on the market for less time and 80.2 percent of properties being taken to auction are achieving unconditional sales on auction day , which is typically between three and four weeks from their initial listing date .
New listings have continued to enter the market at increased levels , 8.7 % higher when compared to 2019 . However , we have seen an even greater increase in sales , which are 38.04 per cent higher than last year . Whilst all these factors remain in the market we will continue to see downward pressure on how many days on average it takes to sell a property .
Having acknowledged this cycle is unlike anything that has been experienced in recent memory , it is much harder to predict where the market may head next . What is occurring at present though is the fundamental supply and demand dynamics at work . Although supply is increasing , it is not increasing at the same level of the demand . It is not generally typical for both of these drivers to increase at the same time and the result of this is the increasing transaction numbers that are currently being seen .
What does that mean for people considering selling now ? All indicators suggest that there will be a continuation of the elevated listing levels coming to the market as we progress through spring and into summer which will capture the attention of additional buying interest on the back of the depth of pre-approved buyers . This , coupled with the increased affordability through record low interest rates , favourable returns compared to other investment opportunities , and general confidence in the housing market , are all underpinning the record sales results currently being achieved .
Residential real estate has long been a feature of the investment landscape in New Zealand due to its longterm performance and stability . While these factors are always important when making investment decisions , with various sectors of the economy having experienced varying levels of uncertainty , the residential property market has remained resilient .
The information is general information only , not financial advice , and does not take into account your individual objectives , financial situation or needs .