MARKET COMMENT AS AT 15th March 2021
The latest statistical information released by the Real Estate Institute of NZ (REINZ) confirms Tommy’s analysis that the market is still moving at pace and that sales are being recorded at unprecedented prices and in record breaking numbers.
The number of residential properties sold in the month of February across NZ increased by 14.6% compared with the same month last year and the 7,964 sales recorded was the highest for the month of February in 14 years.
These statistics support the trending of our own in- house sales despite there still being a shortage of properties to satisfy buyer demand. It is obviously a good time to sell but is a difficult market for buyers with strong competition at all price levels, reduced time in which to carry out a due diligence exercise, busy open homes to navigate and multiple offers being common.
The low cost of mortgage finance continues to fuel the rampant market. There is no visible evidence of this situation changing in the short term but in a news statement on 14th March, the Reserve Bank Governor acknowledged that there needed to be some steps taken by Government and the Reserve Bank to dampen down demand. He also offered a timely reminder to buyers to think about the effect that rising interest rates or loss of income would have on their ability to service high levels of mortgage debt.
In summary, it is a market that is unprecedented in recent times; an era where million-dollar sales have become commonplace!