Real estate principal gives industry assessment

BY ROB POOLEY

Events brought about by Covid-19, not too dissimilar from those of the Global Financial Crisis, engender considerable speculation as to the immediate state of the real estate market.

Principal of Bayleys in the North, Mark Macky, gives his assessment of the current situation and a likely scenario of movement within the industry in the immediate future.

“The Covid-19 situation is unprecedented, and while some assessors give a grim outlook for real estate after lockdown, any forecast can only be speculation, and no calculations can predict real estate movements with any certainty,” he says. “My favourite saying in the last few weeks is that economists have predicted 11 out of the last 3 recessions.”

On the other hand, and while conceding there is bound to be some short-term adjustment in the coming months, Macky believes that Government stimulus plus very low interest rates possibly signal the market will be less impacted than many believe. Pain will certainly be felt, but possibly more by those in specific industries such as tourism and hospitality, than across the board.

Given that improvements in the domestic economy will again generate a return to more job and general stability, those considering selling or buying in the next three to six months would be wise to take action if they have their ducks in a row. The possibility of lower deposits could also allow more opportunities for potential buyers and sellers alike.

Differing from the sharemarket, which can be quite volatile, real estate changes are much more gradual. Macky’s advice is that if someone is considering selling, then there are currently very few properties on the market and there is still strong pent-up buyer demand. Waiting for spring may lead to more supply and less demand, which can have a negative impact on pricing.

Macky believes the popularity of the near north and Mangawhai will continue.