Open homes hot property
Manawatu¯’s property market is buoyant and trackingwellwith plenty of activity continuing post Covid-19 lockdown, according to Real Estate Institute of New Zealand spokesperson Andy Stewart.
An extraordinary number of house hunters are flowing through the open homes each week, demonstrating the demand that is pushing the local market back up.
‘‘I think we’re getting back to preCovid levels; thatwould be my prediction. It’ll be interesting to see the sales figures for Junewhen it’s completed.’’
In talking to other principals in the region, Stewart says most properties are being sold under multiple offers; all indicative of the demand.
‘‘The numbers attending open homes is bizarre, with groups of up to 20 or more going through.’’
With such a huge demand driving the local market, Stewart is quick to advise people, ‘‘Don’t put your cart before the horse. Make sure you get pre-approval for your finance if you don’twant to be disappointed by missing out on a property.’’
While first-home buyerswere first out of the gates immediately after lockdown, and continue to drive the lower end of the market, it is now a much more active market across the whole spectrum of house prices.
People need to understand how to be responsive in this current market. Where it used to take about five days for finance approval, it now takes a minimum of 10. ‘‘Now everything hinges on employment and job security,’’ Stewart says.
Everyone should be getting preapproval before starting their property search, including sellers.
‘‘If you’re selling a first or second home, and buying up to a larger or downsizing to a smaller, whatever the reason, you need to go to the bank as soon as you’ve had an appraisal done on your property.’’
Stewart urges people to do their homework before putting their house on the market to be assured they have the finance to move forward. ‘‘Make sure you’re in a position to borrow the money you need and be clear about the level you can extend up to; that used to be a given, but it is not now.’’
Manawatu¯’s rental market is ticking along nicely, too.
Property managers across the country were expecting a huge increase in rent arrears during lockdown. However, this did not eventuate in Manawatu¯ because landlordswerewilling to work closely with tenants who were struggling.
Restrictions on tenancy terminations ended on June 25, and the Government has extended and increased Rent Arrears Assistance to support people at risk of being evicted because they are unable to pay rent due to a temporary change in their income under the impacts of Covid-19.
Rentals traditionally slow down now, because people prefer not to move house during the colder months.
However this isn’t expected to last long as applications roll in from people out of the area looking to move to the city for work on some of the region’s big projects as they restart.
During lockdown, work stopped on such projects as Mercury’s $450 million Turitea wind farm, and the $620m Te Ahu a Turanga- Manawatu¯ Tararua Highway.
These big projects are expected to bring a new flurry of demand to Manawatu¯’s property market.