PHOTO:THE-PRESS Listings are down, and so are interest rates.
Young buyers lured by low interest rates are competing for homes in Christchurch amid a supply strangled by the Covid-19 lockdown.
With lenders dropping fixed-term mortgage rates below 2.7 per cent this week and deposit restrictions eased, real estate offices and mortgage brokers are reporting high demand from first timers despite the economic downturn.
At the same time, the number of homes for sale is nearly a quarter lower than at the same time last year.
Mortgage broker Rob Parsons of Mortgage First said while he had expected pent-up demand, he thought the forecast economic downturn might dampen buyers’ enthusiasm.
“We’re really surprised – we are absolutely unexpectedly busy and it’s mostly first-time buyers,” Parsons said.
“You’d think if people believe property prices will drop, why would you buy this month? But people are wanting to grab those lovely low interest rates, and they’re not too bothered that prices might drop short-term. The big question is: how secure is your job?”
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