Most Kiwis believe house prices will likely fall as a result of the Covid-19 pandemic, a new survey by OneRoof has found.
However, the survey also found that the crisis and resulting economic downturn haven't halted property plans, with almost half of respondents saying they'll continue to either buy or sell during 2020.
OneRoof's Mood of the Market Survey gives a snapshot of Kiwi sentiment during the last two weeks of the nationwide lockdown, and while many are accepting of the hard realities ahead, the results suggest the market's future isn't as bleak as many feared.
The survey asked a range of property-related questions to more than 1000 Kiwis, including homeowners, first-home buyers and investors.
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More than half (53.9 percent) of respondents said they had plans to buy or sell property this year, while almost a third (32 percent) said they had put plans on hold due to Covid-19.
More than 60 percent of buyers said they either had some confidence (36.8 percent) or total confidence (29.9 percent) that they would be able to find a home this year. Just 4.3 percent felt the Covid-19 restrictions would prevent them from securing a home.
Unsurprisingly, given the economic gloom, the majority of respondents thought house prices would fall as a result of Covid-19. Thirty three percent said price drops were very likely, while a further 31.5 percent said drops were likely."
Thirteen percent of respondents thought changes were neither likely or unlikely, while small minority thought price drops were unlikely (11.4 percent) or very unlikely (2.9 percent).
OneRoof editor Owen Vaughan said that while it was heartening to see that Covid-19 hadn't upended Kiwi plans to buy or sell, the survey did reflect the general feeling of economic uncertainty in New Zealand.
"The biggest fears respondents have right now are money-related. Thirty-three percent were worried they would lose their job, and 35 percent were worried they'd be earning less," he said.
"The biggest real estate concern is property values. More than 45 percent of respondents are worried they won't get the money they expect when they come to sell their house.
"On the flip side, almost a fifth of respondents think price will rise and they won't be able to afford to buy."
The survey also found KiwiSaver was an area of concern. Fifteen percent of respondents believe the recent drops in KiwiSaver's performance will affect their deposit and their ability to buy.
Vaughan said the Mood of the Market survey was an important benchmark for buyer and seller sentiment going forward, and that OneRoof would be conducting further surveys to gain insight into market performance and Kiwis' property intentions.
"What the survey clearly shows is that Covid-19 has affected Kiwis' perception of the market, but it hasn't impacted their plans yet. That may change over coming months, and it will be interesting to note if there is any fall off in sales and drops in prices."
