Despite what had been described as “inevitable” Auckland was taken by surprise last Tuesday when the government announced that COVID-19 has re-emerged in the community with no identifiable trace to the border. The response has been swift and we are now locally in the midst of a two week Lockdown at Level 3, with the rest of the nation at level 2.

Despite having what feels like the rug pulled from beneath us, the property market has seen some welcomed news around the health of the market, and with Loan deferrals being extended, there’s a strong chance the market will prevail through this second wave.

Here’s what to need to know:

Property Market Fights Off Economic Uncertainty and Winter Blues

According to the latest figures form the Real Estate Institute of New Zealand, it seems that despite the traditional winter downturn and dire economic predictions from the pandemic, The housing market performed strongly in July with sales volumes up 25% compared to July last year – and the highest number of sales made in the month of July in the last five years.

In Auckland, July sales were up 30.3% compared to July last year, which was also the best July month for sales in five years. For the rest of New Zealand (excluding Auckland) sales were up 21.5% compared to July last year, which was the best July for sales in 15 years.

The national median selling price was $660,000 up 3.4% compared to June and up 14.8% compared to July last year. In Auckland the median price was flat at $920,000, down just 0.1% compared to June, but still up 11.5% compared to July last year.

REINZ Chief Executive Bindi Norwell addressed the recent return of Covid, stating, “Even though anecdotally we’ve had a great start to August, the real question now is how long this can be sustained for, particularly now Auckland has gone back into Level 3.”

How the two weeks in lockdown affects the Auckland market will remain to be seen, but there is some security in these July figures moving forward. Reserve Bank Agrees to Help Banks Extend Mortgage Repayment Deferrals The Reserve Bank (RBNZ) Governor Adrian Orr confirmed last Wednesday that the RBNZ has agreed to help banks extend the mortgage repayment deferrals they’ve been offering their customers since the end of March.

The decision came just after community transmission was confirmed again in the Auckland community, but Orr urged people not to flood banks with inquiries, as the details of what will be offered are still being ironed out – with an announcement expected later in the week.

As always, an extension is not permanent,” Orr said.

It is ultimately a bank’s decision whether it enables a customer to defer the principle and interest repayments on their mortgage.

-by Ravi Mehta, from Professional Financial Solutions