MARKET COMMENT AS AT 17th July 2020
“Is now a good time to sell?” This must be one of the most commonly asked questions in real estate, a question that runs through the minds of every homeowner when considering the sale of their family home. Tommy’s are firm of the belief that right now is a good time to sell for a number of reasons.
Firstly, the winter months are with us and this is historically a time when there is less property being offered for sale therefore there is less competition in the market place. We are also operating in an environment where demand exceeds supply and with planeloads of Kiwis returning home, this scenario seems unlikely to change. The latest report from the Real Estate Institute of NZ (REINZ) states that nationwide, house prices have continued to surpass predictions for how they would perform post-COVID 19. Tommy’s sales data from the last 2 months support this REINZ statement and we have experienced good sales numbers at a level as good and in some instances better than the pre-COVID 19 lockdowns.
Homebuyers are realizing that the anticipated reduction in property prices may not occur or at best is unlikely to be significant and are chasing the market in search of affordable buying opportunities.
Other factors may affect the market in coming months such as the forthcoming elections, the termination of wage subsidies and the end of the freeze or deferment of mortgage payments but the issue of supply and demand will still be with us and supports Tommy’s belief that now is a good time to sell.