tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, May 29th, 10:05PM

News

rss
Latest Headlines

Lockdowns don’t stop market rumbling on

Enthusiasm for buying houses has not been dampened by lockdowns.

Friday, September 3rd 2021, 10:14AM

Real estate agents across the country say there is minimal impact on sentiment beyond an obvious reduction in attendance at open homes and to a lesser degree auctions.

In the most recent REINZ and Tony Alexander real estate market survey agents say while the stepping back by investors in the buying market is continuing, fewer are selling.

A net 41% of agents have seen fewer investors in the market in August, a slight drop on July.

“The degree of investor withdrawal has eased since May, but only slightly, and their continuing stepping back stands in stark contrast to what first home buyers are doing,” says Alexander, an independent economist. 

The most cited driver of investor demand remains interest rate levels.

About 20-30% of agents say finding a bargain is investors’ motivation for buying.

This measure has barely budged from recent months and sits much lower than early in last year’s nationwide lockdown when a gross 60% and then 55% of agents said hopes of getting a bargain were strong.

Alexander says the Government’s tax changes and extension of the bright-line test plus the lockdown have not produced any statistical evidence of a wave of investors selling.

A net 6% of agents report they are seeing fewer investors selling – not more.

Biggest fears

The biggest factor concerning residential property buyers continues to be a shortage of property listings.

Data from realestate.co.nz show seasonally adjusted nationwide new listings have been dropping for most of this year, and the stock of listings is almost 30% lower than just before last year’s nationwide lockdown.

There is no trend change in concerns about access to finance, and the slight rise in concerns about prices falling is minor.

Alexander says the area of buyer concern showing a definite trend change is worries about interest rates increasing.

A gross 42% of agents have cited this as a major concern they are observing, up from 36% last month and just 13% the first time we asked this question in late May.

Prices rising

A net 59% of agents feel prices are rising. This is essentially unchanged from 61% in July.

The real estate market has entered this lockdown with upward momentum in monthly price gauges just as was the case for the first nationwide lockdown last year.

On average between 2011 and 2014 when this same question was asked in a previous survey, a net 31% of agents said prices are rising. The nationwide pace of price increase over that period averaged just over 5% a year.

Fomo (fear of missing out) in play

The return of Covid in the community and reimposition of lockdown has not prevented fomo from continuing the rising trend it has been on since late May.

A gross 71% of agents have reported that they are observing nervousness from buyers regarding missing out and this is well up from the low of 49% in April.

“That low point came in the second survey after the tax changes announced on March 23 and illustrates there can be a delay between something substantial happening and the fomo gauge strongly altering,” says Alexander.

Tags: housing market lockdown property investment Realestate.co.nz REINZ Tony Alexander

« New records in building industry consentsListings cool: Expected to bounce back quickly »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 ▼7.65 ▼7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 ▼7.84 7.35 ▼6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼7.24 6.75 ▼6.39
Median 8.64 7.19 7.27 6.65

Last updated: 28 May 2024 11:21am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com