Auckland’s red hot housing market is back under Level Three restrictions, and while last year’s return to lockdown had no effect on house prices or buyer intentions, the mood is split on what the impact will be this time.
Real Estate Institute of New Zealand chief executive Bindi Norwell told OneRoof that Auckland’s three-day lockdown could be stressful for those looking to buy, sell or find a rental.
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Under Level Three restrictions, agents can only conduct two private viewings per property per day, which may not be a huge problem if the lockdown is lifted come Thursday but an extension would impact weekend plans for open homes.
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The main Auckland agencies are able to conduct auctions online and by phone, so again, a short lockdown may not have much of an impact.
Norwell said: “People are used to engaging with digital tools as part of the buying and selling process, and we would anticipate that the move to Alert Level Three [in Auckland] and Alert Level Two [outside of Auckland] are unlikely to significantly slow down the real estate market given people’s adaptability and flexibility.”
Ray White chief auctioneer John Bowring said the company’s auctions for this week would be run as scheduled but would be held online at least until Wednesday.
Buyers planning to attend auctions this week would have likely done their due diligence and got their finances in order.
“They’ve all seen the properties; they’ve sold theirs they’re all ready to go. It's all going to be very normal this week,” Bowring said
Bowring said auctioneers had already experienced working remotely during the first two lockdowns. “When we were in Level Three in August, we had an exceptional run. There were a lot more qualified buyers. But next week could be different as building inspections become more difficult,” he said.
Bowring said a slow-down in the market was unlikely. “If anything, it might ramp up once we come out of Level Three,” he said
Real estate agent Derek von Sturmer, whose Professionals agency covers some of Auckland’s most expensive suburbs, said the lockdown would have impact on the number of new listings coming to market.
“I had one listing that was due to start next week but all the work that was going into the house with painting and building has now been delayed and we won’t be able to start on time,” he said.
“There are definitely people whose plans are in the air until Wednesday.”
He added: “There will be a build-up of demand. Delays in listings would increase buyer focus on current stock.”
Economist Tony Alexander does not believe the lockdown will slow the market or put extra upward pressure on prices.
“I don’t expect any noticeable impact on the number of sales for Auckland in February, and certainly not in regard to prices and where they would be going anyway.”
Last lockdown more people dived into the property market and were encouraged by low interest rates and it could happen again, if the lockdown extends.
“Nothing is jumping out at me saying there’s going to be a difference in price outcomes or turnover outcomes,” he said.
