Jen Baird, Chief Executive at REINZ, says that the latest lockdown has not dampened demand for, or confidence in, the housing market, as was seen in early 2020.
“We have heard from across the industry that prices achieved on sales completed in the early part of this lockdown continue to illustrate an ongoing excess of demand oversupply." In other words, prices are still rising. Although lockdown impacted the sales process and buyers’ ability to physically view property in the final two weeks of August, Auckland has seen another record median price, the ninth record in the last 12 months.
Conversely, new listings were down 18.8% from July, leading to ongoing low stock levels (down 23.6% year-on-year), which continues to feed FOMO in the market. Not surprisingly, therefore, the number of properties sold in Auckland in August decreased by 12.8% year-on-year (from 2,689 to 2,346). This is a smaller decrease than that of New Zealand as a whole, indicating that the multiple lockdowns Auckland has experienced over the last 18 months may have set the region up well to deal with changes in alert levels, and buyers remained confident. And whilst the number of properties sold across Auckland in August was less than 2020, it was still higher than what we saw in 2016, 2017, 2018 and 2019, commented Baird.
“Real estate agents have been through all of this before and are comfortable using digital solutions for much of the process," Baird goes on to say. "Overall, Auckland has remained relatively resilient to lockdown, so far, and people have been adapting to online real estate functions, which has seen online auctions, virtual inspections and buyer enquiry activity continue.”
This is certainly something that resonates with the whole team at Damerell Group, who have proved to be early adopters and market leaders in selling property during these difficult times.
Auction rooms may have gone quiet when Alert Level 4 came into effect but it didn’t stop auction activity online. The latest data indicates that Auckland had the highest percentage of auctions across the country, with 39.5% of properties selling under the hammer (927), up from 30.3% (816) at the same time last year.
Damerell Group’s auction figures, however, continue to be the best in the business with a 90% sell-through in August (81% on the day, 9% prior), indicating that auctions continue to be the most successful method of sale, no matter what alert level we happen to be in.
The final word this month goes to Baird: “and it is expected that this will be stronger this year as listings are delayed as a result of lockdown. We understand that vendors have been preparing their properties for market, to list once we reach a lower alert level — we expect to see the result of this in our September data.”
If you are looking to sell your property or simply after a price indication, give one of the team at Damerell Group a call today to get the ball rolling.