Covid-19 and the real estate market
Rachael Cone, owner of Total Realty, reflects on how the pandemic has impacted the housing market and where it’s likely to be heading now that we’ve adapted to life with Covid-19.
Despite the health concerns and lockdowns of the past two years, the real estate market has remained surprisingly buoyant throughout.
Even with the ongoing uncertainty, border restrictions and the introduction of the Traffic Light System, buyers were still turning up in droves, and sellers were still happy to have strangers coming through their properties to view.
The most common concern pandemic sellers and buyers have had is in relation to the potential for Alert Level or Traffic Light Changes while their property was under contract. Sellers and buyers were understandably keen to protect themselves should a lockdown or restriction be announced in their region, affecting their ability to complete due diligence or, in some cases, to settle.
The eleventh edition of the ADLS/REINZ Agreement for Sale and Purchase of Real Estate was recently released, and this includes a new Covid-19 and Pandemic provisions clause in the body of the agreement to cover off any potential scenarios that could arise.
As I write this, we have settled back into the Orange setting as a country, where there are no capacity limits for indoor or outdoor gatherings, and the use of ‘My Vaccine Pass’ is no longer a requirement.
While the housing market seemed to be unstoppable six months ago, it has certainly cooled in recent months. The slowdown has been music to the ears of some buyers who see this as their first chance to buy in a long time. Most sellers however are holding out for a favourable offer, while some buyers are fearful of paying too much.
While Canterbury prices are holding steady, last month’s REINZ data showed a 35 per cent decrease in residential sales across the country when compared to the same month last year. You no doubt will have heard some economists predict house prices to fall this year, however, they have also predicted modest gains throughout 2023. Interest rates, global uncertainty, and changes in lending restrictions are all contributing factors here.
At Total Realty, we are still busy listing and selling homes, as we have done throughout all market conditions over the past 15 years. Proud to be Canterbury-owned and armed with up-to-the-minute sales information, we are always more than happy to answer your questions and help in any way we can.
Our friendly team would welcome the opportunity to discuss this current market with you.
0800 663 737 | totalrealty.co.nz
