Improved prices and faster results, that’s what June gave us!

While this came with a slight downturn in the number of sales from May, the energy around the market in Christchurch has returned. Though the figures don’t seem to indicate the full feeling of the shift, maybe there is a little more to come.

On the face of it, some dynamics of the market have settled down; such as OCR remaining unchanged for the first time since August 2021 and money lending policies now allowing first home buyers to reconsider a purchase level that until recently, they most likely couldn’t have gone to. Certainly, these points have helped repair faith in our market because first home buyers are a significant portion of sales month to month and in turn, it may allow current homeowners to make the life stage related moves that they desire in a more confident way, knowing a qualified buyer is likely to be out there.
While the current momentum is positive, it is unlikely we will be back to record prices from here. Interest rates have had their share of airtime lately and continue to have an impact. Both for those who have joined the market since 2020 (with the adjustment of the rate itself) and for many who are established in the market with the application of these rates to the current house prices if they move. Indications are these rates are staying for a while, give or take.

Recently Statistics New Zealand put Christchurch population growth to be up 15% by 2048 with neighbouring Selwyn projected at a 47% increase over the same period. This would suggest that demand for homes will continue.

As the election gets closer it is perhaps investors who have the most to ponder. Sit or Sell? On 21 June Tony Alexander released survey findings that only 55% of investors intend to keep their property at least ten years or never sell. The appeal of owning a rental looks different these days with the loss of interest expense deductibility, bright-line testing since October 2015, the introduction of the Healthy Homes Standards since July 2019 and the continuing Tenancy Law changes. However, regardless of the reasons these rules exist, we need housing for people who cannot or choose not to buy. Sure, rents have increased, but so too have lending ratios for investors, insurances and rates. If this is your thin king perhaps it is time, the buyers are out there! On the flip side of this, if you a re in for the long game, ten years or more and could buy and hold, have you seen a better time to buy property in recent memory?

Not surprisingly the decision to sell for any reason is not made lightly. Less new listings have been coming to market, seasonally we expect this in winter, though there isn’t a result driven reason for this. We know many people are waiting for the election result. Could it lead to a saturation of properties for sale mid-October?

If you’d rather get in while its good, our Harcourts team can help you and maximise the value of your property in the selling process. Why am I so confident? Because they’re doing this for others right now. We’d love to hear from you soon.

REINZ Figures:
Median $650,500 | Average $732,749

Harcourts Figures:
Median $690,000 | Average $808,162