Over the last three weeks I have been talking with many clients about their post-Lockdown real estate strategies. The Pandemic Lockdown appears to be having its intended effect, and coming out of Easter (a little heavier) most of us are now looking toward May and hopefully getting back to some level of normality in both our business and personal lives. A strong recurring theme / question from my clients of late has been ‘should I sell now, wait till Spring or even beyond?’. While no one can tell the future, we do know more about ‘selling today’ than we know about ‘Spring & beyond’ which is a truism that tends to hold in any market.
This question ultimately depends on your personal circumstances. If you don’t ‘need to sell’ then it may well be best for you to ride out the current situation and look to a campaign in 2021 or beyond. However for some of us our personal circumstances may require a more short term focus. Homeowners in this position right now may be those with relatively high debt, those who need to shore up their businesses, families who have recently experienced a redundancy, reduced rental/Air B&B income or perhaps you just need a larger or smaller home and are well aware that you will be buying and selling within the same market.
What we do know about selling now is that there will more than likely be less competition than in Spring, when many households mortgage-deferral period will end, and in some cases potentially forcing properties onto the market.
We also know that active home buyers are still engaged in the market, and are fielding plenty of enquiry for our current listings, particularly from well qualified returning expats, helped along by the weak NZ Dollar.
In Spring we may likely see a higher balance of professional investors in the marketplace, driven less by emotion than traditional home buyers. We may also see a resetting of bank lending criteria which could have the dual effect of less buyers shopping for more properties than at present.
Another thing to note - frankly - apart from the recent uptick in the 6 months to March the local market has still been very tough over much of 2017 – 2019. Sellers need an agent with resilience, a track record of bringing buyers and sellers successfully together for exceptional results, who is used to dealing with tough trading conditions. Call me today !
Posted: Wednesday 22 April 2020