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BOP Property Builds Momentum in a ‘Sellers Market’

If you’re thinking about selling your house, now is the time to do it. If you’re thinking about buying a house, now could also be the time to do it.

Covid saw the country temporarily go into a state of shock but with borders now under control and the election completed, the property market continues to build. With overseas travel not a current option, Kiwis are looking to put their money elsewhere and property is proving to be a popular option. 

According to the REINZ Monthly Report, September 2020, “median house prices across New Zealand rose by 14.7% from $596,956 in September 2019 to a new record high of $685,000 in September 2020”. The Bay of Plenty is a hot region reporting record numbers. Compared to September 2019, median house prices are up by 17.8%, sales numbers are up by 31.2%, and the average number of days it takes to sell is 36 (down by 6). Tauranga City alone reported selling 74 more houses in September 2020 compared to September 2019. The numbers say it all – there is an intense demand for houses at the moment and people are more than willing to pay above CVs. 

Low interest rates, not enough listings to match demand, and the removal of LVRs are all contributing factors to the increase in both house prices and sales. Although it is seen to be a ‘sellers market’ at the moment, home buyers need not feel defeated. As the banks furiously compete against one another, interest rates look to drop further and further with Heartland Bank recently taking the plunge to 1.99% per annum. First Home Buyers are looking to strike but sometimes in vain with reports that some banks are taking over a month to process applications and in some cases, even turning away new customers due to overwhelming demand. Mortgage brokers have their work cut out for them.

According to Priority One’s Economic Monitor Report, September 2020, “ Despite media reports to the contrary, there is no flood of Kiwis moving back to the country. For an area that has experienced high population growth in recent years, largely due to migration from other New Zealand cities, the flow on effect of this change could lower housing demand over the 2-3 year timeframe”. So, if you’re currently sitting on the fence about whether to sell now or in the future, it may pay to keep this in mind because nobody has a crystal ball to tell us how long Covid will continue to impact migration numbers.

If you have questions about selling or buying property get in touch with Cashmores today. We pride ourselves on doing things differently and working with you to get the best solution possible. We look forward to hearing from you!    

 

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