Market Update with Bret Glazer & Donna Churton

Today the government announced the new alert levels for Auckland with a decrease to level 2 at 11:59pm on Wednesday, 23 September and the balance of the country now at alert level 1. Cabinet will meet again to review the alert level settings on 5 October.

As we enter the final full week of September our results reflect the continued momentum of the real estate market. In looking at our live listings, these are currently 26.04 per cent up on the total number of properties listed in the last 28 days, which is 2,028. While the continued number of listings is helping buyers with choice, the depth of purchasers in the market adds to the momentum of the sales numbers, which are currently 41.79 per cent ahead of the same time last year. In real terms this means that we are overselling our current listing bank, and this is adding to the pressure on prices and the availability of stock as a total inventory. Although this number is 27.01 per cent ahead of the same time last year, it continues to have variances week-by-week and this is in favour of the sellers.

There has been a lot of data released this month on the momentum of the real estate market. On top of this, there have been several new forecasts made by economists around their potential predictions of price rises or otherwise for real estate over the next quarter and 12-month period. While these predictions vary, they are now all in the positive from a 3.5 per cent lift to an 8 per cent lift in prices in 2021.

The economists are citing price increases for 2021 based on three main factors; firstly, the low cost of money borrowing at historic low interest rates which is aiding affordability. Secondly, the increased migration numbers of people resettling back to New Zealand and the growing confidence that New Zealand has curbed the recent pandemic crisis. Are these factors correct? Should there be other factors that are just as important? Only time will tell. If you are considering selling, then clearly there is significant momentum in the market that is in favour of sellers.

Well marketed properties that have transparency around pricing for buyers give a higher response rate and with the current pre-approval levels there is a deep buyer pool. We produce Ray White Now based on accurate analysis of our data for our clients to make decisions based on what is happening now. Supply and demand, pre-approved buyers and auction results are just part of the information we can provide during these changing times. Ray White has 182 offices across New Zealand, and we welcome your enquiry to assist with your property transaction.

Bret Glazer

(Ray White NOW)