OneRoof property report: Will Whanganui become a buyers' market post Covid-19?

The investment which has fuelled the huge growth in Whanganui's housing market over the past few years may make way for a more buyer-friendly market post-Covid-19.

OneRoof editor Owen Vaughan said much of that outside investment was likely to drop as the economic impact of Covid-19 hit incomes.

"Mum and Dad investors may find themselves in a bit of a bind," he said.

"Whanganui doesn't have a huge employment base like the major centres or security of places like Wellington that has a lot of public sector jobs."

Vaughan said the impact on the housing market would become noticeable in about six months but Whanganui could turn into a buyers' market with more supply and fewer buyers competing for properties.

"The appetite for investment properties in Whanganui is likely to drop off," he said.

"Those who are financially secure, in secure jobs and who have paid down their mortgage, they may soon feel they are in a good position to buy."

Whanganui Property Brokers manager Philip Kubiak said he was hopeful that the local market will bounce back fairly quickly.

"We have had nine new listings since level 3 began which is pretty encouraging.

"A couple of vendors have withdrawn their properties from the market as they want to wait and see what will happen after we move through the levels."

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Kubiak said the Whanganui market had been very active prior to the Covid-19 emergency and he is positive about the future.

"Obviously it's not going to be buoyant again for a while but I think we're well placed for when it does.

"The beauty of Whanganui is that it is affordable and an attractive location for buyers who are able to work from home."

Ray White Whanganui manager Philippa Ivory said there had also been a number of new listings this week.

"Since the move to level 3 we've been able to get builders in to complete reports which had been holding up some listings.

"We're getting used to a new way of working which involves showing two groups through each day."

Ivory said it was currently taking up to four days to show through numbers of people who would all have attended one open home prior to lockdown.

"It's taking some getting used to but we're adjusting well."

Bayleys Whanganui managing director John Bartley predicted that investors needing to free up capital were likely to put their properties on the market in the coming months.

He said the Reserve Bank's decision to remove mortgage loan-to-value ratio (LVR) restrictions for 12 months was good news for first home buyers and expat New Zealanders wanting to return from overseas.

"It's very hard to predict what will happen in the local market but since people have realised they can work remotely, many may re-evaluate living in the main centres.

"An area like Whanganui becomes an appealing alternative and we have seen an increase in people looking at local property listings.

"Even at level 3, where only private viewings can be conducted, it is encouraging that property deals are still proceeding."

Bartley said he's aware that people's circumstances may have changed during the lockdown and some are doing it tough.

"Regardless of the scenario, now is the right time to reach out and talk to your bank and real estate agent to discuss your options."