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[VIDEO] Don’t expect a buyers’ market immediately

Listings of properties for sale are likely to lift post-lockdown but CoreLogic’s head of research, Nick Goodall, says that doesn’t mean the housing market will immediately switch into a buyers’ market. [WATCH VIDEO]

That’s because there simply won’t be many listings at all post-lockdown. In an interview with NZ Property Investor magazine publisher Philip Macalister, Goodall said there won’t be the price pressure but there won’t be much choice, even if people are wanting to buy.

“That can mean there’s still some demand competition, so we might see prices hold up for a bit. Although further down the track people, who have come out of lockdown not having done as well as they expected, might be willing to sell for a lower price.

”But CoreLogic is tracking listings, as well as real estate appraisals, and over the last week they’ve seen a lift in the appraisals being done by agents. One reason for the lift in appraisals could be people thinking about the market after lockdown – and that could include investors who are concerned about future cash flow, Goodall said.

“Investors who don’t have many properties, are very highly geared and who maybe bought recently, they could be worried about what that means going forward – especially if they are going to have any problems with tenancies in terms of vacancies.

”It is for this reason that CoreLogic does expect to see a lift in listings at some point.However, there’s likely to be some quite big regional variations between markets, with regional markets that are reliant on industries like tourism and hospitality like to show the most impact, Goodalladded.In this interview, Goodall also discussed which regions are set to be the most directly affected by the Covid-19 lockdown and what landlords and investors will need to think about going forward