MARKET COMMENT AS AT 16th April 2021
Recent housing policy changes announced by government have not yet had any marked influence on a market dominated by strong and unsatisfied buyer demand. Despite the announcement of a number of new policy initiatives it has been business as usual in a buoyant and fast-moving marketplace. Tommy’s recorded a record level of sales in March with most properties turning over within 2 to 3 weeks of listing.
Whilst it is expected that the recently announced policy changes will have some impact on the market and may deter the enthusiasm of investment buyers, any loss to the market of investors is expected to be absorbed by first home buyers and homeowners upgrading all of whom continue to have access to cheap mortgage finance.
Demand remains strong and although Tommy’s has listed strongly in recent weeks, Wellington is faced with the fact that not only is there insufficient property for sale, but there is also a general shortage of housing throughout the region; a problem that exists in most of the country.
The recent announcement by the Reserve Bank of New Zealand on 14th April that there would be no change to the Official Cash Rate is an indication that mortgage interest rates would remain low and inviting and tends to suggest that we will continue to operate on a market that favours home sellers in the foreseeable future.