With the effects of Covid-19 likely to stretch well into the future, New Zealand's economy is looking very vulnerable. We spoke to Gabrielle Finlayson, a real estate agent from Bayleys Orewa to see what would likely happen in the housing market over the next few months.

“So far, the impact of Covid-19 on the housing market has varied. There have been positives for buyers, for example the LVR restrictions have been removed for at least the next 12 months and mortgage lending rates are at their lowest point ever. There was also an increase in activity just prior to lockdown because buyers were wanting to seize opportunities.

“Although the country spent April in lockdown, there was still activity taking place within the market. 

“When looking long term, things look rough initially, but hopefully not for too long. 

“We believe the greatest impact will be in the next six months as the economy resets and the country moves out of lockdown. We predict that there will be a 30-50 per cent decrease in volume within the marketplace, so there will be greater demand for the properties that are available. However, there will continue to be opportunity within the marketplace for those looking to buy and sell.”

“Our advice to those looking to sell in the next year or so is that there’s a great opportunity right now, especially in the coming months. A number of properties sold just prior to lockdown, so we have active cash buyers within the marketplace needing to buy. We are also seeing an increased demand in the market from ex-pat Kiwis that have either returned home or will be making the move in the future.

“On the NZ Herald home page, a carousel which Bayleys holds the exclusivity over has seen a 35 per cent increase in traffic, with an increase to 40 per cent of traffic coming from offshore. Even if an owner doesn’t want to publicly advertise their property, we would certainly suggest that they talk to their real estate agent if they are open to a change, because we believe there will be an increase in off-market sales due to buyer demand.

“For those looking to buy in the next year or so, our advice is firstly, keep your real estate agent updated on what it is you’re looking for. We are talking with our buyers at present and due to one reason or another, what they’re looking for may have changed. By staying in regular contact, we are able to better assist them. 

“In terms of why now is a great time to purchase; we know the downturn is temporary. Those that wait for the bottom, inevitably miss it. We only know that we’ve hit the bottom once things start going up again and when that happens, prices rise, competition at auctions increases, interest rates rise, and listings decrease. Sellers in the market over the coming months are selling for genuine reasons. With the transition to Level 2 we will see a greater opportunity of stock in the short term, this will be from those owners that have held off during Level 3 and 4.”