Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Normality And Stability Return To Real Estate Market; For Now

The property market defied expectations in June with the majority of the metrics measured in the REINZ Residential Market Confidence Report returning to ‘normal’ this month – and in fact, sales volumes were the highest REINZ has seen for a June month in four years.

No one could have (or would have!) predicted this result back in April. And even if anyone was so bold, to have made this sort of prediction, their integrity and potentially their credentials would have been questioned.

The REINZ Residential Market Confidence Report for June revealed that the number of properties sold has progressively increased steadily throughout the month, as did listings, which were the strongest for the month of June in four years and are now providing more choice for buyers. Additionally, the number of Comparative Market Analyses (CMAs) completed by agents has increased, which would suggest an uplift in listings in the next few months.

Bindi Norwell, Chief Executive at REINZ says: “The strong confidence people have in the market has been clear for all to see in auctions rooms around the country, with the market going from strength to strength each week. Auctioneers are reporting competitive bidding resulting in strong price outcomes for vendors, and the total percentage of auctions exceeded the proportion of auctions we saw last June. There are no signs yet of this confidence dissipating, not something we would have predicted a couple of months’ ago.

“Furthermore, the median sales price to valuation ratio has returned to where we saw things pre-COVID, with properties selling on average for 13% above CV across the country and the median number of days it takes to sell a property is also slowly coming down.

“Kiwis returning home to New Zealand from offshore destinations continue to play an important role in the market, with some agents reporting family members here in New Zealand visiting open homes on behalf of overseas family members. Other agents are reporting expats buying properties sight unseen, similar to stories we heard last month.

“If it weren’t for the continuing headlines on the front pages of our newspapers outlining COVID-related job losses and the impending end to wage subsidies and mortgage ‘holidays’ in just two months’ time, we might be able to call the end to the impact of COVID-19 on the property market. However, as there have been many balancing factors impacting the real estate market over the last few months, this is unlikely to be the case.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Federated Farmers: Applauds UK-Australia Free Trade Deal

News that Australia and the UK have signed a free trade agreement is a promising step forward in the fight against tariffs and protectionism, Federated Farmers says.
"It reinforces the international rules-based trading framework and is important for rural producers and global consumers," Feds President Andrew Hoggard says... More>>




ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>


Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>

Reserve Bank: Debt Serviceability Restrictions Added To Policy Toolkit

The Reserve Bank – Te Pūtea Matua and the Minister of Finance have agreed to update their shared Memorandum of Understanding (MoU) on macro-prudential policy and add debt serviceability restrictions to the list of potential tools available... More>>