New Zealand home buyers typically have a large appetite for properties in the spring season, but things are usually on the slow end in autumn. Even so, house buyers went into a buying frenzy at the start of this year, with valuations and sales picking up substantially in Christchurch and Auckland City. Selling a House during COVID-19 Coronavirus explained.
Then Covid-19 coronavirus came, and it wreaked havoc on the NZ property market, just like it did to any other industry across the globe. The country is already in a lockdown. The situation is so distressed that it has created some sort of a short-term recession that’s most likely to impact the real estate industry the most.
selling a house during the Covid-19 coronavirus pandemic is like climbing Mt. Everest. That’s why we have put together a handy guide to selling a house in a recession situation like the one we are in right now.
House inventory is going down
Naturally, many Christchurch house sellers have delisted their properties. They don’t want to violate lockdown rules during the state of emergency. Fortunately, that means this is a sellers’ market, but you may still have to be content with unfair asking prices.
That’s to be expected from a market in a recession. So should you be selling your Auckland City house in recession for a lower price than market value?
That’s a resounding, no. Instead of wallowing in the pain of losing equity on your house because of the Covid-19 situation, just sell to a cash buyer like We Buy Property NZ. With a cash house sale, you will be surprised to get a lucrative all-cash offer in as little as 24 hours!
The interest rates are equally low
In response to the Covid-19 pandemic, the Reserve Bank of New Zealand has cut the official interest rate to a paltry 0.25%. This will help keep the Kiwi’s financial system revving and cash-flow moving between the government, households, companies, and banks.
Speaking of the real estate market, such an incredibly low rate will increase demand for houses in New Zealand. While it may work in your favor as the seller, the Covid-19 lockdown may have something else in store for you.
It’s our collective responsibility to stop the pandemic
The government has declared the State of Emergency because of the global virus outbreak. When you’re selling a house during Covid-19 Coronavirus, it’s important to keep in mind that stopping the pandemic is a collective effort.
You have to play your part by practicing social distancing. If you don’t observe the lockdown, you may also land on the wrong side of the law. So, how will you be selling your house in a recession in Auckland City?
In a practical sense, that means no open houses, no home staging, no repairs, no renovations, and more importantly, not letting strangers into your home!
Tip #1: Price your house for sale in Auckland right
If you overprice your house for sale in Christchurch during the Covid-19 situation, you will likely get zero offers. That’s no secret. As such, before listing your property, get a ballpark figure based on realistic market projections.
If your Christchurch house for sale is priced appropriately, it will sell no matter how bad things get.
Tip #2: Use online social selling tactics
The internet has opened a whole new world of selling a house in recession. The chances are you’ve been staying indoors since the lockdown was introduced, so why not take advantage of social media to catch up with friends, colleagues, neighbors, and other people in your neighborhood?
Get the word out that your house is listed on the market. Maybe someone knows a serious buyer.
Tip #3: Sell as-is to cash home buyers
Selling your Auckland or Christchurch house for sale as-is is your best bet during this outbreak. A cash house buyer like We Buy Property NZ makes the whole process easy and hassle-free. And best of all, you don’t have to hold open houses and showings, so don’t have to worry about strangers infecting you with Covid-19.
