As the national and international economies react to the fast-spreading Covid-19 virus, many are probably wondering if it will affect our current strong housing market. Quotable Value announced that house values continued to rise nationwide.

Here’s what you need to know:

Coronavirus and The Auckland Housing Market

One of the biggest news stories of the year is the pandemonium around the Covid-19 virus which has had a noticeable effect on markets overseas, and many may be wondering if could affect the housing market here in New Zealand.

The biggest hit New Zealand will feel is from the tourism industry and migration, and possibly halt our exports which in worst case scenario could bump up our risk of recession. Depending on the global and national response and the how temporary border closures are, experts are predicting at this stage the dollar may dip slightly but will recover rather quickly. What many are expecting is that the Reserve Bank will likely cut interest rates at least once, and the government will ease fiscal policy in some manner, which will hopefully keep the continued trend of upturn in property investments and prices.

The market is also showing no signs of slowing down in the wake of the Covid-19 virus, in fact Auckland’s largest real estate agency reported that for the month of February, sales volumes reached a five-year high. The agency sold 804 residential properties in February, up 70% from 474 in February last year and the highest February sales volume since the height of the last property boom in 2015.

Managing director Peter Thompson described that number as “exceptional” and had no worry that the growth would continue into March stating, “There is every indication that excellent start the market has made to the year will flow into March, which traditionally is the best sales month in the first half of the year”.

There was also an increase in new listings, with the agency receiving 1640 new listings in February, up 4.9% compared to February last year. But with new cases of Covid-19 appearing in the country and Auckland, it will remain to be seen if the market will feel the effects from the virus.

Residential Property Values Continue to Rise

According to Quotable Value, the average dwelling values are rising throughout the country hitting $722,475 at the end of February – up 2.6% compared to three months earlier and up 5.3% compared to a year earlier.

In Auckland specifically the average value was $ 1,057,556, up 1.8% compared to three months earlier and up 1.2% compared to a year earlier. Auckland also had the most expensive district in Auckland City East, which includes high priced waterfront suburbs such as St Heliers and Mission Bay, where the average dwelling value is $1,568,901.

-Ravi Mehta