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On the flip side, some Kiwis are likely
to have mortgage repayment
problems as they struggle to make
ends meet over the next two or three
Coronavirus & that they will deal with these situations
months, although banks have said
responsibly, and it’s unlikely that we
will see anyone lose their home in
House Hunting anything other than the most extreme
of cases.
In summary – if the crisis is over
quickly, there’s no need for panic.
How will Coronavirus affect the
NZ Housing Market? Expect prices to flatten or even take a
small negative dip in some parts of the
country – then recover over the
(Article from Juno Investing) use open homes and auctions as following 12 months.
sales tools.
As we find ourselves in the midst of But if we’re still dealing with Covid-19
a four week lockdown due to the But life will go on, and houses will still by Christmas? That’s a completely
coronavirus, property commentator change hands. different conversation.
Ashley Church reviews its effects on
the New Zealand property market. It’s also worth noting that for house Published 24 March 2020
prices to fall, people have to be selling
Do I think the property market will be their homes for less than the market Ashley Church is a property
affected by the crisis? previously said they were worth – but commentator for OneRoof.co.nz.
sellers will face the same sales He’s been a media commentator on
Yes I do, but the extent of that effect process difficulties as buyers, so it’s property for more than 20 years.
will depend on how long the crisis unlikely we’ll see much change in Email him at ashley@nzemail.com
lasts. If the worst of the impact is over prices during the crisis. And
by June or July, then I would only confidence will quickly return when it’s
expect there to be a small hit on the over, fuelled in part by the historically
market, but if this thing is still with us low interest rates resulting from the
by Christmas, the consequences are Reserve Bank’s recent OCR cut.
likely to be much more serious.
It’s also worth noting that the New
There’s no question that market Zealand housing market has been
activity will be affected over the next remarkably resilient over the past 40
few months. Impulse and ‘casual’ years and has only seen three falls in
house-buying will all but disappear, values over that time – with none of
and even those who need to buy (due those falls getting anywhere near
to relocation, family size, downsizing, numbers that would be defined as a
or economic pressure) will still face a ‘crash’. (continued on next page)
more difficult time because they can’t
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Looking to buy? Let’s talk through your options!
Chris 0274 960 959 c.grantham@barfoot.co.nz
Karen 0272 961 449 k.mcgehan@barfoot.co.nz
