MAY 2020 MARKET UPDATE
28 May – MARKET COMMENTARY, REAL ESTATE, MARKET UPDATE
It all feels a little back to normal in the real estate world, or just about. Open home numbers are confident and buyers are still looking and making buying decisions.
There are always those one or two buyers that can’t wait to tell us that the market is about to come crashing down and we should all hide for cover (unless our owners will happily take a massive drop and then they are in).
The stats from the month of level 3 show a significant drop in the volume of sales but with part of this accounting for level 4 transactions or lack of and with people initially in level 3 hesitant to get buying immediately, it is not a surprise at all.
Yes, prices are a little softer but once again to be expected with a reduction in confidence from purchasers with the concerns of economic effects, job layoffs etc. With these and the real unknown for many of what the future brings, you can’t blame anyone for taking the wait and see attitude.
We expect to see the market stats to show more softening as they play catch up to today’s market, but we don’t feel they will be in the double digits at all.
With maybe 5% so far and maybe another around 5% as we set into the new norm, all that has happened is that prices have gone back to the end of 2019 levels. For many owners looking to buy and sell in the same market or owners who have enjoyed the comfortable 10% increase seen over the last 12 months even after this softening, I still can’t think of a safer investment than residential property.
As you can tell I am not a subscriber to the doom and gloom predictors, the general economists from overseas (Harry Dent Jr) who don’t know the intricacies of how our New Zealand economy and property market interacts with the many facets that affect its values.
I do put a lot of confidence in a well seasoned local economist (Tony Alexander) likely the most well known and respected one of our time who provides many reasons why although we will see job losses and a tougher economy for a period, we will only see moderate softening of houses prices and not an absolute bath as many buyers hope and wish for. (Another Article by Tony)
Moving forward, myself and my team are out there working our butts off making it happen. So if you are looking to sell and get a fair price in the current market or are looking to buy and prepared to purchase for a fair price in the market, please get in touch as we would love to help.
