[VIDEO] Don’t expect a buyers’ market immediately

Wednesday 15 April 2020



Listings of properties for sale are likely to lift post-lockdown but CoreLogic’s head of research, Nick Goodall, says that doesn’t mean the housing market will immediately switch into a buyers’ market. [WATCH VIDEO]

That’s because there simply won’t be many listings at all post-lockdown.

In an interview with NZ Property Investor magazine publisher Philip Macalister, Goodall said there won’t be the price pressure but there won’t be much choice, even if people are wanting to buy.

“That can mean there’s still some demand competition, so we might see prices hold up for a bit. Although further down the track people, who have come out of lockdown not having done as well as they expected, might be willing to sell for a lower price."

But CoreLogic is tracking listings, as well as real estate appraisals, and over the last week they’ve seen a lift in the appraisals being done by agents.

"One reason for the lift in appraisals could be people thinking about the market after lockdown – and that could include investors who are concerned about future cash flow", Goodall said.

“Investors who don’t have many properties, are very highly geared and who maybe bought recently, they could be worried about what that means going forward – especially if they are going to have any problems with tenancies in terms of vacancies."

It is for this reason that CoreLogic does expect to see a lift in listings at some point. However, there’s likely to be some quite big regional variations between markets, with regional markets that are reliant on industries like tourism and hospitality like to show the most impact, Goodall added.

In this interview, Goodall also discussed which regions are set to be the most directly affected by the Covid-19 lockdown and what landlords and investors will need to think about going forward

Comments from our readers

No comments yet

Sign In / Register to add your comment

House Prices

Is the market resurgence coming to an end?

Steady declines in value growth are becoming evident – as QV’s latest data reveals – and that suggests the housing market’s resurgence could be coming to an end.

Commercial

Augusta Capital takeover bid now unconditional

ASX-listed Centuria Capital has declared that its takeover of New Zealand property funds manager Augusta Capital is now unconditional, as it has secured nearly 66% of Augusta’s shares.

Mortgages

ANZ eases servicing test

ANZ has become the latest bank to ease its servicing test criteria for borrowers, reflecting the lower interest rate environment.

Site by PHP Developer