Ray White Now New Zealand - September Edition - Page 14

Nerida Conisbee , Ray White Chief Economist
It has been a heady ride for the housing market in New Zealand over the pandemic . Prices have surged , sparking a rush of people coming to market to sell their homes . Since March however , conditions have become a bit different . Restrictions on finance have slowed the market and prices appear to be starting to plateau . With buyers still active in the market , and more finance restrictions on the horizon , what is the outlook for the New Zealand housing market this Spring ?
Buyer activity remains strong
While it is easy to track the number of properties for sale , tracking serious buyers is a little more difficult . New Zealanders are property obsessed and enjoy looking at properties for sale and attending auctions , even if they have no intention of buying or selling . To combat this , we have used the number of active bidders at auction to gage buyer activity . If you make a bid at an auction , it can reasonably be assumed that you are a serious buyer .
Not surprisingly , the number of active bidders was low during the first lockdown but once the economy was fully open again in June 2020 , active bidding began to increase again . There was a bit of a lull over the Christmas / New Year period but then a summer rush of activity occurred . Since the start of winter , we have seen a continued pickup in active bidders at auction . New Zealand property is very expensive , but for now it doesn ’ t seem to be deterring buyers and competition for properties remains strong .