'Like it never happened'
This has been the most peculiar of recessions, with governments and central banks around the world pouring in unprecedented monetary and fiscal stimulus, including unconventional policy measures (some of which now are arguably conventional).
New Zealand has seen negative interest rates for the first time in recent weeks, and the local housing market is firing as if the COVID-19 recession 'never happened', posting its largest gains in years.
This follows on from surprisingly solid year-on-year price gains seen in the palpably stagnant UK, and home sales close to hitting 15-year highs in the U.S.
Thunder Down Under
Chris Joye at the AFR noted that housing bears are 'turning bullish', and Police Bank CEO Greg McKenna underscores a major issue: there's very little quality stock available to buy, with listings way down on a year ago and desirable properties selling quickly.
Cameron Kusher of REA Group notes that people have 'massively underestimated' the potency of 3-year fixed rates from 2¼ per cent, with most potential homebuyers having been relatively speaking less affected by this year's recession.
Kusher also notes that in spite of Melbourne's desperate travails, property sales are outstripping listings, with volumes well up on last year.
And, in a shameless piece of self-promotion, REA Group via the Courier Mail report that there is a new weapon for property buyers in need of assistance buying a home.
See here for more or click on the mugshot below:
You can check out more about Buyers Buyers here, where we previously identified the conspicuous driver of the nascent rebound: put simply, it's now cheaper to buy than it is to rent, and Federal and state governments alike have put in place the incentives for first-time buyers to pull the trigger.
Refer to the state-by-state analysis to discover exactly where it has become cheaper to buy than to rent.
