September was always going to be a month to watch as we assessed the impact various COVID-19 Alert Levels have had on our city. What the data shows is that confidence remains high and buyer demand is still strong, says Jen Baird, Chief Executive at REINZ.
Continued low levels of inventory are primarily fueling the high level of demand. This is clearly illustrated in our latest sales statistics that show there has been a significant drop in the number of properties for sale in every suburb in which we work. The clear message here is that now is a great time to be putting your home on the market despite the ongoing restrictions.
Our September auction numbers back this up, with 89% of properties falling under the hammer on the night or sold prior to auction. More telling, however, is the average number of registered bidders per auction, which has jumped to five over the past month. This is a strong indicator of a healthy appetite for property of all types and sizes in the Auckland market.
There is a note of caution, however. With 83.2% of houses in Auckland selling above the $750,000 price-point, it would appear that there has been a decline in the numbers of first home buyers, concludes Jen Baird. “Auckland has also seen a decrease in investor activity due to COVID-19 and new tax legislation, in conjunction with a low level of stock and rising house prices. With the market showing some caution, many expect the usual spring activity to be delayed until Auckland is in Alert Level 2. Some expect an increase in Aucklanders wanting to live in provincial areas outside of the city, due to the length of time spent in lockdown, giving rise to considerations on whether living in another area of New Zealand is an attractive option.”
Either way, stay or go, the Auckland market is only heading in one direction — and that’s up.