Monthly Market Update | October 2020

Market momentum continues at full speed

2020 has been the year for extremes for the property market, amongst other sectors.  October results producing some of the highest numbers in history both volume and price based, yet only 6 months ago with the country in lockdown, April showing some of the lowest ever seen.  The big question remains is what will the next 6 months produce?

Demand remains strong across all sectors of the market, yet supply is still restricted.  Whilst listing volumes are up, they are still struggling to keep up with the demand of active buyers.  The Reserve Bank’s announcement this week that they are looking at reinstating LVR restrictions again in March 2021 is likely to further fuel demand prior to this.  Investors who will potentially be most affected by the LVR restrictions will be particularly active.

Research this week released by KEA (Kiwi Expats Association) outlines that whilst over 50,000 kiwis have returned home this year, that it is likely to be just the beginning with expectations a further 250,000 will be looking to return in the next two years, placing additional demand on our already short supplied housing market.

Auctions remain a very popular method for both buyers and sellers to transact in a transparent manner in this quickly evolving market.

Auckland region’s median house price hit the million-dollar mark for the first time, setting a new record.  North Shore’s median price for October was $1,150,000 up 17.3% from the same time last year, whilst average days on the market have reduced to just 32.

Low interest rates continue further fuel to an already hot market.

All in all very positive signs of a market remaining at full speed through the festive season.