Post COVID state of play
Properties suited to first home buyers and investors seem to be moving quickly, especially while interest rates are good and property values seem to be holding. There are more buyers than property on the market which means busy open homes and plenty of phone calls and some solid offers. Take our listing at 25B Redmond St, Judea for example (pictured below).
Cheapest listed in Tauranga, rental appraised $400 - $430 per week. Awesome, reliable periodic tenants who are keen to stay on. This property has had a huge amount of interest and had a conditional offer within three working days on market. It had just under 2900 unique visits in that time and a lot of solid inquiry and interest. The offer was made unconditional within a week of listing the property.
Investors are still very much in the market, we saw this last week with the amount of investor interest we had in 11B Arundel Street, Avenues which I sold under the hammer last week.
THE NOT SO GOOD NEWS IS:
Finance can be harder to get sorted as lenders tighten their reigns and become more selective on who they lend money to.
It's tougher for first home buyers and buyers right on the equity line. Where buyers had secured finance earlier in the year, this may not be the case now. In the last month or so we've had three deals fall over due to finance issues - telling of a different climate. Mortgage brokers are working hard for their clients, looking for alternatives and solutions, if you don't have one I recommend you use one.
THE TRUTH IS
Demand is still high due to lack of supply. The cost of building labor and materials remains high which means the value of newer built properties will remain firm due to cost to replace. 511 Gloucester Road, Papamoa is proof of this.
511 Gloucester Road, Papamoa
Listing price: $1,375,000
Current status: Unconditional - Listed four weeks prior to level four.
Positioned on two amalgamated sections with a combined total of 648m2 is this outstanding three bedroom, plus office, two living areas, three bathrooms, double garage dwelling. The focus here is on space, quality of finish, livability, and functionality. The first offer we had through was conditional upon the purchaser's Auckland property being sold and had a cash-out clause. Another buyer put an offer on, cashout the deal, and the property is now theirs. Million-dollar plus are still selling even in a post COVID world, with strong interest and solid offers.
It's true that listings are down year on year. But, both prior to, and post lockdown, there were fewer properties on the market year on year throughout the country and the lack of properties going up for sale has kept prices strong - supply and demand. Less properties for sale means more competition amongst buyers.
I believe we're mostly insulated in the BOP region, with the likes of the Port and our primary industries giving us some cushioning. In a nutshell, keep on going.
There are homes to sell and life carries on so if you're keen to know what your property is worth, you know where I am.
If you're a data person and keen on understanding more about the real estate market right now across New Zealand, take a look here: https://raywhite.co.nz/ray-white-now/< Back to Blog Articles