The period leading up to making a decision regarding buying or selling property is always a time flooded with competing and conflicting information and opinions being promoted by seemingly qualified individuals and outlets. Who is right and who is wrong and who do we believe, are questions we all ask.
Put simply, especially in 2020, when we have even more information to assess or circumstances to consider than normal, our view is that facts are what should be relied on rather than opinions.
The facts right now are simple. We have a typical winter market where listings are lower than buyer demand. This supply/demand imbalance is seeing good competition between buyers for available stock in almost every marketplace in New Zealand. The current and historically low mortgage interest rates available are adding to buyer confidence and competition.
In addition, as a country we have a shortage of housing stock for our population. This is a population that loves to own their own home, and also to invest in property. These underlying facts all add up to a recipe for confidence in the future of the real estate market in New Zealand.
In 2020 we can’t ignore the fact that the world is battling a pandemic, and on top of that in New Zealand we are facing a general election in the spring. So, what impact will be felt from this, and what should buyers and sellers of real estate consider in their decision making?
Reality is that the pandemic response within New Zealand has put us in an envious position of almost normal life, (aside from missing our beloved overseas travel), and is driving Kiwis with a need for somewhere to live and invest. The lockdown period has also led many of us to review the style of home we live in, thus encouraging further selling and buying decisions to be made.
Election time can sometimes create a hesitation in the market while people wait and see what might happen post-election night. This year, given the supply/demand imbalance, any hesitation may be reduced. In addition, the Covid-19 pandemic has generated a let’s get on with life attitude across the world.
Based on all the facts above, our advice is simple; if you’re considering a sale in the spring, we would strongly suggest you list right now. We know the market is strong and buyer demand is active so why wait to compete in a spring market when historically there has always been a flush of new listings to offer buyers choice?
If you are looking to buy, do your sums well, consider your employment or business status and go to the market and secure your new piece of New Zealand with confidence.
Put simply - this isn’t an opinion, just sound advice based on facts.
By Bryan Thomson, Managing Director
Harcourts New Zealand
This article is featured in Harcourts' Property Focus Newsletter Issue 4, 2020.