Buyer demand has continued to skyrocket as the property market heads for a busy winter, according to the latest Trade Me Property Index.
The Trade Me Property revealed that onsite activity increased by 11% in May 2020 compared to April 2020 and 69% compared to May 2019. It also reported an increase in the number of email inquiries and watchlist ads from its members.
“May was a very busy month for prospective property buyers, and we saw a spike in activity on Trade Me Property,” said Aaron Clancy, a spokesperson for Trade Me Property.
“It's great to see the New Zealand property market begin to get some momentum back after several months of lockdown. While the property market typically cools during the winter months, we're already seeing signs that the COVID-19 enforced lockdown could see New Zealand buck this trend in 2020, and we might be in for a very busy winter ahead.”
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The number of properties for sale nationwide also increased by 24% last month compared to April.
“It seems that sellers in our larger cities are a little slower coming back to the market with supply down in Auckland and Wellington, but elsewhere, we're seeing lots of activity. The increase in both supply and demand around the country are signs [that] New Zealand's property market is in a positive frame of mind,” Clancy said.
He added that younger buyers have remained interested in the property market, with double the number of 19 to 30-year-olds browsing property in May compared to the same month last year.
“This is a continuation of the trend that first emerged in April when we saw a 38% year-on-year increase in the number of people under 30s browsing property when compared to the same month in 2019,” he said. “With the LVRs scrapped and interest rates at all-time lows, it's an attractive time for young house buyers to get a foot on the property ladder.”