Organisation had seen the highest sales volumes for a June month in four years
The real estate market is returning to normalcy and stability, with the Real Estate Institute of New Zealand (REINZ) seeing the highest sales volumes for a June month in four years.
The latest REINZ Residential Market Confidence Report revealed an increase in the number of properties sold in June and the number of Comparative Market Analyses (CMAs) completed by agents, suggesting an uplift in listings for the coming months.
“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,” said REINZ chief executive Bindi Norwell.
“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.”
Read more: Report reveals increase in million-dollar property sales
Median sales price to valuation ratio has also returned to figures before the COVID-19 crisis, with properties selling on average for 13% above CV.
“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,” Norwell said.
“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.”
