As of today, Tuesday 12 May, we have been in lock down for 50 days.
This Thursday 14 May we will transition to ‘Alert Level 2’ which allows for a return to normality throughout many industries across the country, while adhering to certain rules.
Over the last 50 days I have had a number of conversations with existing home owners that I have a relationship with.
The main question that I have been asked is one you that might have come to expect- ‘What will happen to the market?’
First of all, it is important to understand that the sales data and reports that we gain from REINZ or other reputable real estate sources that are commonly used to measure, may not be quite as accurate as they have been in previous months.
We might have to wait as long as June or July before we can start seeing any real evidence of market movement with regards to sales volume, median sale prices and median days on market.
The above categories are major points of focus for industry professionals such as myself, as they provide an immediate explanation of the state of the market in numbers.
To help you understand these terms I’ve provided a quick summary below;
Sales volume is the number of properties that are sold in a specified time period, which is compared monthly and annually.
A median sale price is the average sale price of properties in a specified location.
Median days on market relates to how many days a property is on the market, from the day it is listed to the day it is sold unconditionally.
We are due to receive the statistics for April shortly. Comparing it to the statistics March (above) will make for interesting reading.
On the North Shore, Auckland the median house price in 2019 was $1,020,000.
In 2020 it has risen to $1,155,000.
The sales volume on the North Shore, Auckland has gone from 318 in March 2019 to 412 in March 2020.
Hit the ground running
The next 8-12 weeks may be the most testing time in the career of a real estate agent.
Quality activity over the break and upon their return will be the distancing factor between those who are serious about their business vs. the rest.
With regards to my personal business plan I have had to adjust and make some minor changes from my standard 50 daily calls.
I moved the majority of my calls to the tail end of lock down to ensure that I could support my clients with useful information and knowledge, which was only ascertained after industry leaders were able to get a grip on the market and share in depth.
There is still a lot of positive energy from these industry leaders with regards to the direction of the property market, with the removal of the LVR’s and the lowering of mortgage rates.
There is still activity!
There has been an increase in activity at Harcourts Cooper & Co, especially over the last 5 days.
In those 5 days, 785 private inspections took place and were safely conducted by agents at Harcourts Cooper & Co.
87 offers have been written and 133 market appraisals have been carried out for vendors.
Currently, for any industry professional it might be harder than normal to determine the price of a property in this market and it may continue to be so for an extended period of time.
Mortgage rates as previously mentioned are now under 3%.
Mortgage Express state that their mortgage front is ‘Looking really, really busy for the next couple of weeks’, meaning we may see more people trying to buy property in the near future.
Our role as real estate agents in this market is to provide accurate information constantly, which is what I strive to do for those who read this.
As heard this morning from Harcourts Cooper & Co. Auction Manager Shane Cortese, “There is nothing more reassuring in uncertain times, than certainty.”
Stay in a positive frame of mind and keep learning.