Shining the spotlight on homes

By Joel Davoren, Managing Director, RE/MAX Australia

COVID-19 shone the spotlight on the home and caused many people to question where they lived and what they lived in.

Shelter is a basic human need. People need an ongoing, sustainable supply of decent, habitable shelter. After the physiological needs, of which shelter is one, Maslow (Maslow’s hierarchy of needs, 1943) says we must feel safety, belonging and mattering before we can seek esteem and finally, selfactualization.

As human beings we thrive on achieving goals and research has proved that we are at our happiest when we are improving. People want to buy into the feeling of progress, and this has always been a great driver for change.

COVID-19 is a perfect example of change and adaptation. People have looked at their lives and asked themselves ‘What can I do to adapt?’. Terry Bowles, an Associate Professor of Psychology, University of Melbourne, says we’ve adopted a model of adaptive thinking and decision making in response to the pandemic.

We managed negative emotions through constructive actions and meaningful plans. We sought out practical support in terms of expertise and advice, plus moral support. We drew on self-motivation. Then, we were open to change.

Sure, Coronavirus has forced businesses to adapt to survive the pandemic but as individuals, we have altered our plans in significant ways.

How many people accepted that the four-week trip to Europe wasn’t going to happen this year and decided on a back-deck makeover instead? We are certainly seeing the uptake in construction, in renovation and home improvement, which in the long term could give more listings, better quality listings and people having more equity in their homes.

How many investors tipped holiday dollars into expanding their investment portfolio? Many investors unaffected by loss of employment looked at interest rates, availably of loans and other opportunities in the real estate market.

How many people found they weren’t spending the same amount each week in the clubs and pubs that they had done pre-COVID? Suddenly people were saving money, and this particularly affected first home buyers who were able to find their way further along the path to a deposit and entering the property market for the first time. Government incentives have helped.

COVID-19 was first confirmed in Australia in late January and in New Zealand in late February, with restrictions coming into play around 19th March. As people found themselves increasing less mobile, the pandemic shone the spotlight on the home. In a ‘back to the future’ way, there has been a greater emphasis on home ownership … back to where the dream began.

RE/MAX New Zealand’s CEO, Don Ha, who lives in one of the safest countries in the world says …

“As a nation of five million kiwis, we should be proud of ourselves as the best example of how one nation can cooperate and work together to achieve the best outcome against COVID 19. As the nation returned to level one, kiwis were very quickly back in business and learnt how to rebuild themselves and live with the ‘new normal’. Kiwis have very quickly learned how to reset their career for a better future, including a new breed of businesspeople entering real estate market.

In real estate, we are bucking the world trend, with prices only down 1% compared to last year. Some major centres are up on last year. Expat kiwis returning home to the safest country in the world are looking to buy a safe haven for their family. Interest rates are at an historic low and a shortage of properties around the country has held up prices.”

But as countries, businesses and individuals plan for a post-pandemic future, everyone must draw on their skills and experience to shape a safer and more resilient world. In this world, we’ll all need a place of safety, sanctuary and certainty. Our home.