What’s fueling our heated housing market?
Residential sales figures in much of New Zealand have defied expectations this year with a refusal to slow down. Abode’s resident real estate duo, Steve and Belinda Ellis from Bayleys Fendalton, consider the factors behind this unexpected phenomenon.
Before we started our real estate careers, our years spent renovating houses taught us a lot about property and the housing market. Our love of homes and design made the move into real estate feel like a natural progression. Sixteen years later, we have a great team alongside us that includes our daughter as well as a team of experienced agents and support staff.
When it comes to the current property market, we haven’t seen anything like this in over ten years. New Zealand’s efforts to contain the COVID-19 virus and returning to a ‘new normal’ faster than other parts of the world has put us in the spotlight. For Kiwis living overseas, the prospect of returning home and settling here feels like a safe option.
Despite the worrying predictions for unemployment, displacement and financial hardship, on the whole, New Zealand has bounced back well so far.
Looking to the new year, a variety of factors give the market a positive outlook, including favourable lending conditions driven by record low interest rates which are set to continue for some time.
Never in our financial history have retail interest rates fallen below three per cent and all signs from the Reserve Bank of New Zealand indicate a preference for keeping these rates low, for longer.
Recent market buoyancy continues to feed a fear of missing out, and we’re getting a lot of inquiries from buyers wanting to act now to avoid missing the boat as prices rise and the availability of stock dwindles.
The Real Estate Institute’s recent House Price Index showed the value of New Zealand’s housing market to have recorded its highest pace of inflation since February 2017. Buyers are now scrambling to take advantage of favourable lending conditions before the landscape changes.
Despite the number of new listings coming to market, it has not been enough to keep pace with demand and the biggest question facing sellers has been where to go next?
The government’s focus on infrastructure and a record number of building consents issued are reassuring for people who might be looking to take advantage of their sale profits and build their dream home.
0800 30 30 33 | steveandbelindaellis.co.nz
