MARKET COMMENT AS AT 16th June 2020
Whilst the full impact of the COVID-19 lockdown and the flow-on effects from job losses and business failures is yet to be seen it is pleasing to see that generally speaking, people are getting on with their lives. After being in isolation just a few weeks ago and practising social distancing, who would have thought that over 40,000 people would crowd into a rugby game recently?
With the relaxation that has come with being at level 1, viewing of houses has become easier and is virtually back to what we have previously become accustomed to. The public has responded to being able to mix freely again and this is evidenced by the numbers of people who once again feel safe attending Open Homes. Tommy’s are witnessing increasing numbers of home buyers coming through the doors and sales in May and in early June have exceeded expectations.
From our observations, there appears to be an increase in the pool of home buyers at present compared to pre Covid days. The buyer’s pool contains an increased number of first home buyers boosted by the availability of cheap mortgage finance. Investment buyers and ex pat Kiwis who have returned home are also evident in the market place. House prices in the greater Wellington area are generally holding up and there has been little evidence to date of this changing as long as demand continues to exceed supply.
As we enter the winter months we can perhaps expect the usual slow- down in market activity. With the strong buyer interest at the present time though, this year’s winter may well be more active than some we have experienced in the past making it a good time for those in the market to sell.