Now that the election is over, the Real Estate Institute of New Zealand (REINZ) is concerned whether the post-election period would see the usual effect on the housing market.
For the last four elections in a row, the number of homes sold in the three months post-election has increased compared to the same period before the election, according to an analysis by the REINZ.
“Traditionally, we see the three-month period prior to an election period as being a time of more subdued housing activity when compared to the three-month period after the election. This is because people tend to take a ‘wait and see approach’ in terms of how housing policy might impact them,” said REINZ chief executive Bindi Norwell.
“If we see the usual post-election sales rise, we could be in for an extremely busy end to the year – especially given how busy things are at the moment.”
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More listings are usually seen in the market as summer approaches, and the REINZ has reported already seeing early signs of an increase in listings. Therefore, sales volumes of residential properties would most likely follow the same trend post-election, said Norwell.
“However, if 2020 has taught us anything thus far, it's to expect the unexpected, so there is a chance, albeit small, that we might not see an uplift as we head towards summer; but there are no signs at this point in time suggesting a slow-down may be around the corner,” Norwell continued.
“In fact, with record-low interest rates, no LVRs, and the first sub 2% mortgage rate in the country, we could well expect a continuation of growth as we head towards Christmas.”