Covid-19 Update Week Two
QV Warns Fallout from The Lockdown Could Effect Market Until End of Year
QV General Manager David Nagel commented on the effects of the coronavirus pandemic in it’s latest report stating that nobody really knows what the post-lockdown market could look like as “we’ve been through anything remotely like this.” He predicts that supply for houses will likely be reduced, new builds will be effected and first time buyers could take a hit as kiwisavers have been effected and potential unemployment rises.
But Nagel also predicted that a “buyers market” could potentially form as a result, with less competition between first time buyers for property, slashing of net migration and low-interest rates could be an opportunity for buyers,
Banks Prepare for Mortgage Holiday Applications
Banks now have the necessary regulatory approvals to offer mortgage repayment deferrals for those affected by COVID-19. The main retail banks, ANZ, ASB, BNZ and Kiwibank, have online application forms ready to go, giving mortgage holders – whose incomes have been impacted by COVID-19 – the option of pushing pause on the repayment of the principal and interest of their loans.
In a statement to it’s customers, Westpac offered support in managing mortgages and taking advantage of the holiday, “Customers shouldn’t be concerned about missing out if they need this support. If you don’t have a payment coming out in the next few days then we encourage you to hold off and wait for the electronic form which will provide a simple, streamlined way to get this done.”
The relief is available to those with loans secured against residential property, including owner-occupiers, investors and businesses.
More information on the Market pre-lockdown:
What many may be heartbroken about is just how well the market was doing before the lockdown. March is traditionally a good month for the market, and with the recent success previous months had seen, the market was on a real uptick. Data from Barfoot & Thompson’s March sales figures show the market was on a roll before the lockdown with record average and median selling prices, with the average selling price of $993,528 coming in well above the previous record of $968,570 set in March 2017.
The median selling price was $925,000, topping the previous record of $900,000 also set in March 2017.
New listings were also stronger, with Barfoots signing up 1763 new residential listings in March, up 12% on March last year and the highest number for the month of March since 2017.
Barfoot & Thompson managing director Peter Thompson was confident that if the lockdown had not happened, this trend would have continued through into April and further, “Without the intervention of Covid-19 we could have anticipated the market’s momentum would have run through to late autumn.”
Thompson mentioned that the company is trying to adapt to the lockdown, offering online viewings of properties and negotiations, “Through the use of online technology, sales activity has continued through the Covid-19 lockdown.”