With the Prime Minister dancing her way into Level 1, REINZ & Tony Alexander have teamed together to understand what's happening in the property market. Below we breakdown their findings in the REINZ & Tony Alexander Real Estate Survey Results released this week.
Buyer Activity - Who is Showing Interest?
Covid-19 has created uncertainty in the market, but that doesn't seem to have put a damper on investor activity. The survey has shown one in four real estate agents reporting an increase in investor buying.
The results have found more people to be attending open homes, with greater market interest coming from investors and first home buyers. 1 in 2 responding agents have also noticed more first home buyers in the market.
It's unsurprising that the greatest interest is coming from these two groups, as it's been well reported that interest rates are low, property prices are expected to fall, and the current economic conditions and uncertainty are not ideal for most buyers. For investors this may mean less competition when purchasing new investment properties, making it an ideal time to grow portfolios.
Low Numbers as Auctions Move Online
Many property auctions are moving online, with attendance at physical auctions still relatively low according to the survey feedback.
Price Expectations
Price expectations are positive, though buyers have concerns about them falling, as well as about their job security and income.
What is the Main Concern of Buyers?
In the survey 50% of agents said that one of the main concerns which buyers have is that there are insufficient listings available. 37% feel buyers are concerned about getting finance, and the anecdotal evidence so far is that banks have become more cautious in their lending.
Outcome of Survey
In a nutshell it seems there is a lower turnout at auctions, and less home buyers interested more so investors, meaning less competition for those looking. In view of this, now may be the time to start thinking about your portfolio and it's growth potential.
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