19 January 2021
Real Estate, Property Investment Property predictions: high hopes for 2021
2021 – We’ve got high expectations for this year after a bumpy 2020. Thankfully it looks like the new year is off to a great start – beautiful summer weather, wins for the Black Caps, and a booming property market!
At Lugtons, once we’ve shaken the sand out of our toes, this is always a time we look forward to. The summer months are good for sales and, off the back of a strong final quarter in 2020, this year’s first quarter looks like it will continue in the same vein.
While we can’t predict what the year has in store for us, there are certainly contributory market factors that are worth noting. So, if you’re looking to buy, sell, rent or invest in 2021, here are our top five tips to see you through the next 12 months.
1. Ride the wave
If you’ve been thinking about selling your home, now is the time to do it. The market is hot, buyers are hungry, and sales are fast. The economic downturn we were told to prepare for last year post-lockdown doesn’t look like it will be as severe as initially thought, which is good news for the property market over the coming months.
2. Prepare for auction
The fast-paced market has seen auctions become the preferred method of sale. This, combined with homes having a three-week campaign period, as opposed to the traditional four or more weeks, means sales are happening faster. A shortage of homes on the market is also pushing prices up – a trend we expect to continue well into 2021.
3. Act quickly, but with certainty
Once on the market, properties aren’t staying put for long. Buyers know if they want it, they need to act fast, as multiple parties are usually interested. In November last year, we saw a record 24 median days to sell. We don’t expect this to change in the first quarter of 2021.
What we are being prepared for is Reserve Bank intervention at the beginning of March. We’re conscious the booming market won’t be sustainable, so we expect some measures to come into play in the coming months. We’ll keep abreast of these changes and be sure to let you know how they might affect your sale or purchase.
4. Benefit from low interest rates
Last year’s low interest rates certainly contributed to the feverish buyer demand and we expect these to continue to have an impact, at least for the first half of 2021. Current rates are making it easier for buyers, particularly first-home buyers, to arrange finance – and quickly – which is great news for sellers as genuine buyers have finance ready.
5. Expect and prepare for change
As last year taught us, anything is possible, and being prepared to adapt to changing circumstances is important. The property market and change go hand in hand, so what might be happening in Q1 can’t be expected to be happening in Q4 (though you never know). Here at Lugtons, our team keep abreast of the changes within the property market, so please get in touch with them. We’re always happy to provide you with market insights.
Whether you’re buying or selling, let our team help you navigate the 2021 property market. Give them a call today.