The current buoyant state of the property market is a hot topic across all media outlets and there is no doubt our market has reacted quite differently from what was expected. In a nutshell, property is in huge demand right around the country. Here in Christchurch October's sales figures reflect what has happened nationally. While the 755 recorded sales in Christchurch isn’t a record, the number is right up there.

"Our days on market figure is 28 days which is slightly shorter than the national figure and our median is now a healthy $526,000 - a new record high".

It is reported that close to a quarter of all property sold in NZ was sold by auction in October, here in Christchurch we lead the way in auction culture so we suspect this figure could be a lot higher. In the case of Harcourts figures for Christchurch, we had a huge number of property listed throughout October. This is in fact the biggest in the last two years and in our case over 45% of our listings were listed as auctions. Love them or hate them, there is no doubt that auction is the simplest and fairest way to sell property in a market like this. When there is so much interest in the marketplace, as a buyer it is useful to see transparently who you are bidding against, and have the ability to make a conscious decision as to whether you are prepared to offer more than the last bid. We have lots of feedback from happy clients who say this method of sale is better than the “smoke and mirrors” perception of other marketing methods.

"comments suggest we are heading into a sustained period of price growth and increasing buyer interest from the existing market". 

So where to from here for the market in Christchurch and in fact in New Zealand? There is no doubt that the commentary and rhetoric is changing from the media commentators. The feeling is that we are not in a bubble. The comments definitely suggest we are heading into a sustained period of price growth and increasing buyer interest from the existing market. Some of this past buyer activity has been typecast as people having a “Fear Of Missing Out (FOMO). The expectations long term have changed so that when the world gets back to a little more normality, perhaps borders reopen or space is available in quarantine facilities etc, then we will see the “brain gain” back into New Zealand from the returning kiwis and their families.

"Talk is now that over the next few years we could see as many as 250,000 kiwis and families looking to beat the rest of the world to our door".

If this prediction is in fact true or even close to reality, then our current housing market will not be slowing down any time in the near future. Even if it’s not true, we suspect the pressure from a large number of other people from around the world to get to the safety of New Zealand will be huge.

"If you are wanting to get into the market for the first time every indicator says now is that time".

Market update 21 October 2020

Spring is well and truly under way; the weather is warm and our market is hot. With the election out of the way, property buyers are motivated and the results are exciting. Across New Zealand Harcourts consultants signed up a near record number of deals during the month of September and in fact we had to go back almost 3.5 years to find a larger number of written sales contracts in any given month. Here in Christchurch we wrote up over 41% more contracts in comparison to the same month last year.

If you are trying to purchase at the moment, you are most likely well aware of this activity and are familiar with the huge crowds visiting open homes. You will also be seeing the competition evident around you with multi-offers, as well as competition in the auction rooms. Quite simply there is huge buying interest and that is coinciding with a period of reduced listing stock (homes for sale). For sales to occur there must be property to sell, so the available stock for sale is critical to our market. Available stock levels are low right around the country. In fact, realesate.co.nz are reporting that housing stock levels are down 17% year-on-year compared to September 2019. Here in Christchurch we found our total listing numbers for the month of September were down 13.6% in comparison to the same time last year. Like the rest of the country, discerning sellers are recognising that with lower stock levels and plentiful buyers around, auction is by far the best option to consider when selling your property. As a result, our auction numbers are up 32% on the same month last year. Low stock levels and plenty of buyers inevitably means rising prices, and that is exactly what we are seeing across our city. Month in, month out we are now seeing and reporting increasing property values. Our Harcourts sales figures here in Christchurch show our average sale price in September had risen to over $635,000. This snapshot is by far the highest average we have seen to date, with the trend tracking ever upwards. What can we expect from here?

Crystal ball gazing is always hard, however looking at what is happening locally and nationally it will take something catastrophic for our current market to change dramatically in our opinion. We have no doubt that over the coming months, available stock levels will continue to fall and consequently property prices will continue to climb. In fact, the way we read it, the only thing that will slow our market will quite simply be a lack of stock to sell. We are struggling nationally to get property built quickly and all the experts are telling us that over the next couple of years, we can expect to see a lot of kiwi’s return home from overseas. If this prediction turns out to be correct, all these returning kiwi families will need housing as well, and with available stock levels dropping, this is a sure-fire recipe for increased house prices.

Property that is marketed correctly and sold on the market will continue to attract plenty of attention and sell at premium prices. Selling “off market”, selling quietly, using cheap selling systems or failing to use the best trained and resourced consultants will undoubtedly result in a less than optimal sale price. This is not a market where the cheapest option is the best option, your property will sell and that’s almost a given. You just need to ensure you have received maximum value at sale time and this is something only an experienced agent can offer. An experienced agent will ensure that anyone and everyone who’s out there looking like for a property like yours, will see your property when it’s available for sale.