Auckland Property Market Commentary
It may be gloomy outside and the clouds grey, but the feeling in the property market is not quite that.
This is my first of many blog articles in which I plan to provide information to people, with varied levels of experience in the world of real estate. Today and moving forward, I will document information I have learned and make it readable.
This material will come from industry leaders, peers and from the ‘front line’ of real estate. I will give readers the most up to date and candid explanation of what is occurring in the market with a focus on the North Shore of Auckland.
As an active real estate agent it is my obligation to have a solid understanding of market affairs so that I can relay accurate information to my clients.
Working for a terrific company is key at a time like this. A constant stream of communication, regular seminars and information from industry leaders makes it easy for me to stay in a positive frame of mind with respect to the market.
However, most Kiwi’s aren’t as fortunate as I when it comes to unparalleled access to ZOOM meetings or ‘one-line’ messages from some of the top agents in Auckland.
This is why I intend to bring the information to you via this blog, and in doing so help to embed it deeper into my own brain.
Anxiety and global uncertainty, right?
You’d expect an astounding amount of negativity in the North Shore property market at a time like this, with so much anxiety and global uncertainty- wouldn’t you?
Well as we move from ‘Alert Level 4’ to ‘Alert Level 3’ and optimistically to ‘Alert Level 2’ in a week’s time there isn’t nearly as much of a negative vibe as you might think.
After coming out of my weekly ZOOM meeting with my office peers, branch manager Clare Ellis and company director Martin Cooper the central message was one of energy and a shifting environment within the industry.
Real estate agents now have an opportunity to become more mobile after a long period of inactivity as the ‘National Alert Level’ creeps down. On the ‘front line’, as real estate agents refer to as being in the field, there is still a lot of buyer energy.
Buyers are still in the market and many are becoming more serious due to varied circumstances, or a desire to buy in a period of uncertainty.
As we move towards ‘Alert Level 2’ phones are starting to ring with genuine interest for properties that were listed before we went into nationwide isolation. Agents were unable to take viewings or run open homes due to restrictions.
Under ‘Alert Level 2’ we are now allowed two viewings per day, per property and must record all viewing data and respect decisions of vendors.
Low interest rates + supply and demand
There is a portion of buyers talking about potential ‘bargains’ with the market being subject to a period of uncertainty at the present time, and we may see investors coming back to the market with the prospect of purchasing property with a smaller deposit becomes realistic.
Interest rates still remain the lowest they have in a long time and they look set to remain so for the next 3-5 years, not to mention great cash back options being provided by banks.
There is a logical call for vendors thinking about selling to take their property to market sooner rather than later before others realise it is a good time to be selling, and stock becomes a greater issue.
It is better to gain the early movers advantage while buyer enquiry is strong and interest rates are down, than be caught in the late rush after a few months when people feel as though the dust has settled.
Supply and demand is ever-present element in this, and any market. It will certainly be interesting to watch the campaigns of the properties that make the brave early leap while there is minimal stock to compete against.
After discussion with people in the industry it is clear that there are already a few that have decided to adopt the ‘wait and see’ strategy, on the selling side of the discussion.
There is a strong possibility these people may miss out on capital that could be achieved, if you were to market your property ahead of those who list in 8-12 weeks time once the pandemic is less of a concern.
Now is the time to be in communication with a real estate agent or industry professional if you’re looking at selling, or getting onto the property ladder.
A lot of vendors haven’t heard from their agents during lock down, some may be treating it as an extended holiday!
River Lamb and myself have been communicating regularly with our clients, and coming up with plans to guide them through lock down and get them the results they’re after. Please reach out if you have any further questions.