As we move out of Lockdown Level 4, the Real Estate market is going to receive a huge burst of business.
For all of the following reasons:
- No-one has been allowed to move house, whether settling and just exiting/moving into their new digs, or moving in and out of rental accommodation. So there’s going to be a backlog of moving trucks all trying to complete moving day on the tenth or fifteenth day after lockdown finishes.
- Many people have become DIY kings and the lockdown has put them on their properties like they weren’t expecting. Those few weeks/few months of a slap of paint here and a garden project or two there will have almost all been completed, meaning many kiwis are going to have a house that’s almost ready for market, just a supplies issue away from completion and photos, and instead of sitting back and waiting, we predict many of us may want to test the market, especially if buying and selling in the same one.
- All the people who were already set up to list have just been waiting to go live. Sure, they’ll want to update their paperwork (or the agents should have) to give everybody a fair go, but many waited prior to Covid lockdown to release their properties. So we’re going to have a splurge of new stock, regardless of Covid.
- Those who have found their incomes reduced to where it’s not been very comfortable are going to be thinking about what their assets have been achieving for them. We expect some restructuring, including a simplifying of life. It’s likely, that going forwards, lifestyle property prices will take the most significant hit as we see in most times of shrinking economic activity, simply because those who have been busy with work will be even busier saving their businesses and the time to spend on the land/lifestyle will be severely cut.
- Some people are going to sell real estate to take very interesting business opportunities up instead. As a source of income during a recession, takeaway stores haven’t been the greatest. But canny investors will be looking for smart buys that are normally great returners, and will need capital to do so.
- Domestic tourism is going to get a huge boost in the coming days and months, if not years. As more New Zealanders see the rest of this beautiful country, the more are going to be enamored about living outside the big city smokes they’ve been used to/stuck in as thinking is all that can offer them job support.
- The way we do business and socially interact online has just changed forever to the degree where now working from home, is not the norm, but it offers significant benefits, and streaming services have been obviously capable of soaking up the pressure, most times. This also is going reduce the numbers of people who are held to a particular location for work, and make lifestyle choices to smaller towns and rural areas more possible.
- Realising that the effects on the environment and on our health are higher the more we travel and go out, again people are going to start thinking about where they live in terms of being risk and cost averse. This could open up to conversations about travelling regionally or locally versus anywhere as we continue to manage a global pandemic in our little neck of the woods, and people may well look to move closer to work, or to move away from areas where higher densities of people make community spread of such disease more simple.
- People who have just completed their renovations/tidy-ups are also going to have a wish-list of what else they would like to buy, if upsizing/downsizing/transferring. This will create a live buyer database like we seldom have, simply because of the backlog of waiting demand, and we expect quite a few transfers of property to take place through our private off-market introductions. More than we normally would. And because of this, make sure you touch base if thinking about selling OR buying, and of course if both.
- While the banks are probably going to be pretty relaxed for the first six months about anyone who’s income has been affected by Covid-19, inevitably there are those whose jobs are now toast who are going to shift to start a better life somewhere else, or, reading between the lines, know that they are unlikely to get an income how they were in short shrift enough to re-couple themselves with their loan partner. So we expect alot of marketed properties and sales which will be from people who are casting a safety net around themselves of options, prior to committing to a final sell-date.
There’s heaps more reasons – some are simply aghast at how the restrictions on travel have affected their ability to bond with elderly or vulnerable family members and will be wishing they had been living closer/together for such a time as this.